E-mini S&P 500 Index (ES) Futures Technical Analysis – January 17, 2018 Forecast

March E-mini S&P 500 Index futures are called higher based on the pre-market trade. The index is trading inside yesterday’s range indicating investor indecision and impending volatility.

On Tuesday, the index formed a potentially bearish closing price reversal top. A trade through 2769.25 will confirm this chart pattern. This will not mean the trend is changing to down, but it could fuel a 2 to 3 day correction, or a 50% retracement of its main rally.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2808.50 will negate the closing price reversal top and signal a resumption of the uptrend.

A trade through 2769.25 will confirm the reversal top and a move through 2736.50 will change the minor trend to down.

The short-term range is 2736.50 to 2808.50. Its retracement zone at 2772.50 to 2764.00 is the initial downside target. This zone was tested on Tuesday and provided support.

The main range is 2667.75 to 2808.50. If the selling pressure accelerates then its retracement zone at 2738.00 to 2721.50 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, it looks as if buyers are respecting a cluster of levels including the short-term 50% level at 2772.50, yesterday’s low at 2769.25, a short-term uptrending Gann angle at 2768.50 and the short-term Fibonacci level at 2764.00.

Breaking 2764.00 could trigger a further break into the longer-term uptrending Gann angle at 2755.75. This price is the trigger point for a possible acceleration to the downside.

On the upside, the first target is a steep uptrending Gann angle at 2800.50. Overtaking this angle and sustaining the move will put the index in a bullish position with 2808.50 the next target.