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E-mini S&P 500 Index (ES) Futures Technical Analysis – January 10, 2017 Forecast

By:
James Hyerczyk
Published: Jan 10, 2017, 12:03 UTC

March E-mini S&P 500 Index futures are trading slightly higher during the pre-market session. The index is covering from early session weakness that

stocks-sp-500

March E-mini S&P 500 Index futures are trading slightly higher during the pre-market session. The index is covering from early session weakness that took the market down to 2259.50, slightly above Friday’s low at 2258.25. Although it looks like a minor top was formed at 2277.00 because today’s low took out yesterday’s low, the index is actually trading inside Friday’s range.

Got it? I know it’s a mouthful. Basically, the inside move suggests investor indecision and impending volatility. The longer the S&P stays inside Friday’s range, the greater the move once it decides to breakout out.

If you wanted to break it down further, consider that Friday’s range was 2277.00 to 2258.25. Its pivot or 50% level is 2267.75. This is a good level to play with if day trading.

daily-march-e-mini-sp-500-index
Daily March E-mini S&P 500 Index

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2277.00 will signal a resumption of the uptrend. The main trend will turn down on a trade through 2228.00.

The short-term range is 2228.00 to 2277.00. Its retracement zone at 2252.50 to 2246.75 is the primary downside target. Since the main trend is up, buyers are likely to show up on a test of this zone.

The major 50% level comes in at 2225.50.

Forecast

Based on the current price at 2265.50, the index is in the middle of nowhere when using the short-term Gann angles as reference points.

If a bullish tone develops then buyers are going to go after the steep uptrending angle at 2276.00. Crossing to the strong side of the angle will put the index in a bullish position. This could generate enough upside momentum to launch a rally through the 2277.00 all-time high.

If buying strength through 2277.00, make sure you have volume on your side or the move will fail. Don’t just rely on price.

If there is selling pressure early then traders are likely to go after the support cluster at 2252.00. This is a combination of an uptrending angle and a 50% level. Watch for buyers on a test of this price.

Failing at 2252.00 will be the first sign that the selling pressure is building. The next target angle is 2240.00. This is the last potential support angle before the 2228.00 main bottom.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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