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E-mini S&P 500 Index (ES) Futures Technical Analysis – January 15, 2019 Forecast

By:
James Hyerczyk
Published: Jan 15, 2019, 15:05 UTC

Based on the early price action, the direction of the March E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 2602.50.

E-mini S&P 500 Index

March E-mini S&P 500 Index futures trading higher after reversing earlier pressure. Shortly before the cash market opening. The markets were called lower in response to the release of weaker-than-expected earnings from J.P. Morgan Chase. The company’s shares were down over 1.5 percent after it reported lower-than-expected profit for the fourth quarter. Helping to underpin prices were upbeat comments from Chinese officials which hinted at the possibility of additional government stimulus to help prop up the economy.

At 1439 GMT, March E-mini S&P 500 Index futures are trading 2596.50, up 16.00 or +0.62%.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Daily Technical Analysis

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

The index is currently up seven sessions from the last main bottom at 2438.50. This puts the index in a position to post a potentially bearish closing price reversal top.

The minor trend is also up. It will change to down on a trade through 2560.50. This will also shift momentum to the downside.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 2602.50.

Bullish Scenario

Taking out and sustaining a really over 2602.50 will indicate the presence of buyers. This could create the upside momentum needed to challenge the next downtrending Gann angle at 2646.50. This is the last potential resistance angle before the 2690.50 main top.

Bearish Scenario

A sustained move under 2602.50 will signal the presence of sellers. The first downside target is a minor bottom at 2560.50, followed by an uptrending Gann angle at 2550.50.

If 2550.50 fails as support then look for the selling to extend into the main Fibonacci level at 2547.50. This is the trigger point for a potentially bearish break into a Gann angle at 2524.75.

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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