E-mini S&P 500 Index (ES) Futures Technical Analysis – January 16, 2018 Forecast

March E-mini S&P 500 Index futures are called higher based on the pre-market trade. Earlier in the session the index hit a new all-time high.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The index is in no danger of turning the trend to down, but it is in the window of time for a potentially bearish closing price reversal top.

Now that the higher-high has been posted, traders have to watch the price action and read the order flow at 2794.50. An intraday move under this level will put the index in a position to form a potentially bearish closing price reversal top.

A close under 2794.50 will not change the trend to down, but it will change the momentum. This chart pattern often leads to the start of a 2 to 3 day correction.

Daily Technical Forecast

Based on the early price action, the direction of the index today will be determined by trader reaction to the steep uptrending Gann angle at 2800.50.

A sustained move over 2800.50 will indicate the presence of buyers. This will put the market in an extremely bullish position because the Gann angle is moving up at a rate of 16 points per session.

The inability to overcome 2800.50 will signal the presence of sellers. If the selling pressure increases, we could see the start of a decline with the next Gann angle target coming in at 2768.50.