E-mini S&P 500 Index (ES) Futures Technical Analysis – January 13, 2016 Forecast

March E-mini S&P 500 Index futures are called better shortly before the cash market opening. The market is following through to the upside after confirming Monday’s closing price reversal top yesterday.

Based on yesterday’s close at 1925.00 and the early price action, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 1924.50 and the downtrending angle at 1931.00.

Holding above the uptrending angle at 1924.50 will indicate the presence of buyers. A sustained move over the downtrending angle at 1931.00 will indicate that the selling is getting stronger.

The daily chart is wide open over 1931.00. This could lead to an acceleration to the upside if better than average volume comes in. A typical closing price reversal bottom often triggers a 2 to 3 day rally equal to at least 50% of the last break. This makes the 50% level at 1983.75 the primary upside target.

A sustained move under 1924.50 will signal the presence of sellers. The next downside target comes in at 1908.50. This is followed by uptrending angles at 1900.50 and 1896.50. The latter is the last potential support angle before the 1892.50 main bottom.

Watch the price action and read the order flow at 1924.50 and 1931.00 today. Trader reaction to these levels will tell us if the market is being supported by real buying or short-covering.