E-mini S&P 500 Index (ES) Futures Technical Analysis – January 17, 2017 Forecast

March E-mini S&P 500 Index futures are trading lower shortly before the cash market opening.

The main trend is up according to the daily swing chart. However, the market seems to be lacking short-term momentum with the index straddling a short-term 50% level for several days.

A trade through 2277.00 will signal a resumption of the uptrend. A trade through 2248.50 will turn the minor trend down. The main trend changes to down on a trade through 2228.00.

The short-term range is 2277.00 to 2248.50. Its 50% level or pivot is 2262.75. The market is straddling this price today. It is essentially controlling the short-term direction of the market.

The main range is 2228.00 to 2277.00. Its retracement zone at 2252.50 to 2246.75 is the primary downside target. It was tested successfully last week when the index reached its low at 2248.50.

Forecast

Based on its current price at 2263.50, the direction of the index today will be determined by trader reaction to a price cluster at 2263.00 to 2262.75.

A sustained move over 2263.00 will indicate the presence of buyers. This could drive the market into a resistance cluster at 2270 to 2272.00. The last angle before the 2277.00 main top is 2273.50.

A sustained move under 2262.75 will signal the presence of sellers. This could trigger an acceleration to the downside because the next targets don’t come in until 2252.50 and 2250.00.