E-mini S&P 500 Index (ES) Futures Technical Analysis – January 11, 2018 Forecast

March E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The market has recovered from yesterday’s spike to the downside and is getting a boost today from the lower than expected PPI report which could limit the number of Fed rate hikes.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2760.00 will signal a resumption of the uptrend. A move through 2736.50 will change the minor trend to down.

The main range is 2667.75 to 2760.00. If there is a sell-off then its retracement zone at 2713.75 to 2703.00 will become the primary downside target.

Daily Technical forecast

Based on the earlier price action, the direction of the index today is likely to be determined by trader reaction to the short-term pivot at 2748.25.

A sustained move over 2748.25 will indicate the presence of buyers. This could create the upside momentum needed to challenge the high at 2760.00. This is the trigger point for another surge to the upside.

A sustained move under 2748.25 will signal the presence of sellers. This could trigger a break into yesterday’s low at 2736.50. This is followed closely by a long-term uptrending Gann angle at 2731.75.

We could see a technical bounce on the first test of 2731.75, but if it fails the selling could extend into a pair of uptrending Gann angles at 2723.75 and 2718.50, followed by a 50% level at 2713.75.