E-mini S&P 500 Index (ES) Futures Technical Analysis – January 16, 2017 Forecast

March E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening. Volume is expected to be below average today due to a U.S. bank holiday, however, investors have to be prepared for occasional intraday price spikes.

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 short-term range is 2277.00 to 2248.50. Its 50% level or pivot is controlling the near-term direction of the market.

The main range is 2228.00 to 2277.00. If there is a correction then its retracement zone at 2252.50 to 2246.75 will become the primary downside target.

Forecast

Based on the current price at 2267.75 and the early price action, the direction of the index today is likely to be determined by trader reaction to the uptrending angle at 2268.00.

A sustained move over 2268.00 will signal the presence of buyers. This could create enough upside momentum to challenge the downtrending angles at 2271.00 and 2274.00. The latter is the last potential resistance angle before the 2277.00 main top.

A sustained move under 2268.00 will indicate the presence of sellers. The next two targets are 2265.00 and 2262.75.

The trigger point for an acceleration to the downside is 2262.75. Taking out this level with conviction could trigger a break into 2252.50.