E-mini S&P 500 Index (ES) Futures Technical Analysis – February 9, 2018 Forecast

March E-mini S&P 500 Index futures are trading higher during the pre-market session. The index is trading inside the previous day’s range, suggesting investor indecision and impending volatility. It could also be indicating the market is going through a transition period especially since it is hovering around a short-term retracement zone while trying to form a secondary higher bottom.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2529.00 will signal a resumption of the downtrend.

The minor trend will change to up on a trade through 2726.75.

The short-term range is 2529.00 to 2726.75. Its retracement zone is 2628.00 to 2604.50. We could see a slight shift in momentum to up if buyers can overcome 2628.00.

The main range is 2878.50 to 2529.00. Its retracement zone at 2703.75 to 2745.00 is the primary upside target. This zone stopped the rally on Wednesday at 2726.75.

Daily Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the short-term Fib level at 2604.50.

A sustained move over 2604.50 will indicate the presence of buyers. This could lead to a quick move into the 50% level at 2628.00.

The market has room to run over 2628.00 with the next target the main 50% level at 2703.75. This is another trigger point for an acceleration into 2726.75, 2734.50 then 2745.00. The rally could extend further over 2745.00.

A sustained move under 2604.50 will signal the presence of sellers. The next target is a steep downtrending Gann angle at 2590.50. Crossing to the weak side of this angle could trigger an acceleration to the downside with 2529.00 the first target.