E-mini S&P 500 Index (ES) Futures Technical Analysis – January 16, 2019 Forecast

March E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The early strength is being driven by strong quarterly earnings from major banks like Goldman Sachs and Bank of America. Traders seem to be unfazed by the new developments over Brexit. Support is also being fueled by potential stimulus from the People’s Bank of China.

At 1402 GMT, March E-mini S&P 500 Index futures are trading 2613.25, up 7.75 or +0.30%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the December 12 main top at 2690.50. The main trend will change to down on a trade through 2438.50.

The minor trend is also up. The minor trend will change to down on a move through 2438.50.

The main range is 2690.50 to 2316.75. Its retracement zone at 2546.00 to 2501.75 is new support.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 2598.50.

Bullish Scenario

A sustained move over 2598.50 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into the next downtrending Gann angle at 2644.50. This is followed by another downtrending Gann angle at 2667.50. This is the last potential resistance angle before the 2690.50 main top.

Bearish Scenario

A sustained move under 2598.50 will signal the presence of sellers. If this creates enough downside momentum, we could see a break into the short-term uptrending Gann angle at 2566.50. If this fails then look for the selling to continue into the minor bottom at 2560.50. A trade through this bottom will change the minor trend to down.

Look for investor sentiment to change if 2560.50 fails as support. This could lead to a further decline into the major Fibonacci level at 2546.00.