E-mini S&P 500 Index (ES) Futures Technical Analysis – In Position to Post Potentially Bearish Weekly Closing Price Reversal Top

March E-mini S&P 500 Index futures settled lower on Thursday. Early in the session, the index took out the previous day’s range, but the selling stopped at 2809.50. Buyers did attempt to turn the index higher, but this attempt failed to gain traction.

The index is trading lower for the week and in a position to form a potentially bearish closing price reversal top.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the daily closing price reversal top on January 29.

A trade through 2878.50 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through 2809.50 will indicate the selling is getting stronger.

The short-term range is 2878.50 to 2809.50. Its retracement zone at 2844.00 to 2852.24 is resistance. Trading below this zone is helping to give the index a downside bias.

The main range is 2667.75 to 2878.50. If the selling pressure continues then look for a possible acceleration into its retracement zone at 2773.00 to 2748.25.

Daily Swing Chart Forecast

Based on the early price action, the direction of the index on Friday is likely to be determined by trader reaction to 2837.25 and 2809.50.

A trade through 2837.25 will signal the presence of buyers. This will turn 2809.50 into a new minor bottom. Buyers could run into aggressive counter-trend sellers at 2844.00 to 2852.25. They are going to try to form a new secondary lower top. We could see an acceleration to the upside if the buying is strong enough to take out 2852.25.

A sustained move under 2809.50 will indicate the presence of sellers. If this move attracts enough sellers, we could see a move to at least 2773.00.