E-mini S&P 500 Index (ES) Futures Technical Analysis – In Window of Time for Reversal Top

March E-mini S&P 500 Index futures continued the bull market last week by hitting another record high. There is no resistance on the weekly chart which puts the emphasis on the chart pattern. Due to the prolonged move up in terms of price and time, the key pattern to watch for is the weekly closing price reversal top.

Weekly Swing Chart Analysis

The main trend is up according to the daily swing chart. A trade through 2876.00 will signal a resumption of the uptrend.

A trade through 2876.00 and a move back under last week’s close at 2874.50 will signal the presence of sellers.

A trade through 2876.00 and a close under last week’s close at 2874.50 will form a closing price reversal top. If confirmed, this could lead to the start of a 2 to 3 week correction.

The current main range is 2415.50 to 2876.00. If there is a correction then we could see an eventual break into its 50% to 61.8% retracement zone at 2645.75 to 2591.50.

Weekly Swing Chart Forecast

Based on the prolonged move up in terms of price and time, the direction of the index this week will be determined by trader reaction to 2876.00.

A sustained move over 2876.00 will indicate the buying is getting stronger.

A failure to take out 2876.00 or sustain a rally over this level will signal the return of sellers. This could lead to the start of a meaningful correction.