E-mini S&P 500 Index (ES) Futures Technical Analysis – February 9, 2016 Forecast

March E-mini S&P 500 Index futures are trading lower shortly before the cash market opening while posting an inside move. This indicates trader indecision and impending volatility.

The main trend is down according to the daily swing chart. The trend will turn up on a trade through 1940.00. A trade through 1804.25 will signal a resumption of the downtrend.

Based on yesterday’s close at 1852.00, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 1860.25.

A sustained move under 1860.25 will signal the presence of sellers. The first target is an uptrending angle at 1832.25. This angle was tested earlier in the session, triggering an intraday technical bounce.

The next two targets under 1832.25 are yesterday’s low at 1821.75 and the next uptrending angle at 1818.25. The latter is the last potential support before the 1804.25 main bottom.

Taking out the uptrending angle at 1860.25 with conviction will signal the presence of buyers. The daily chart opens up to the upside over this angle with the next major target coming in at 1892.00.

Watch the price action and read the order flow at 1860.25 today. Trader reaction to this angle will tell us if the bulls or the bears are in control.