E-mini S&P 500 Index (ES) Futures Technical Analysis – January 10, 2019 Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index is likely to be determined by trader reaction to the short-term uptrending Gann angle at 2694.50.
James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

March E-mini S&P 500 Index futures are called lower shortly before the cash market. The market looks tired which may be helping to generate today’s early downside bias. The US-China trade talks are over so all investors can do is wait for a deal. Yesterday’s Fed minutes reiterated Powell’s comments from last Friday so investors know the Fed is going to take their time raising rates. Without a fresh bullish catalyst, prices may pullback into a value area.

At 1354 GMT, March E-mini S&P 500 Index futures are trading 2569.00, down 13.50 or -0.52%.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The nearest upside target is the main top at 2690.50. A trade through 2438.50 will change the main trend to down.

The main range is 2690.50 to 2316.75. Its retracement zone at 2547.50 to 2503.25 is the nearest downside target and possible support zone. This zone is controlling the near-term direction of the index.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index is likely to be determined by trader reaction to the short-term uptrending Gann angle at 2694.50.

Bullish Scenario

A sustained move over 2694.50 will indicate the presence of buyers. If this generates enough upside momentum then look for the index to possibly challenge the downtrending Gann angle at 2652.50. Sellers could come in on the first test of this angle.

Bearish Scenario

A sustained move under 2694.50 will signal the presence of sellers. This could trigger a spike into the major Fibonacci level at 2547.50. This is major support. If sellers take out this level with conviction then look for a potential acceleration to the downside with the next target a support cluster at 2503.25 to 2694.50. Since the main trend is up, buyers are likely to come in on a test of this area.

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