E-mini S&P 500 Index (ES) Futures Technical Analysis – January 17, 2019 Forecast

March E-mini S&P 500 Index futures are under pressure early Thursday, dragged down by weaker sessions in Europe. Sellers are being influenced by heightened political uncertainty in the U.K. and ongoing concerns over China’s cooling economy. The latest Brexit developments show Prime Minister Theresa May narrowly winning a no-confidence vote late Wednesday.

At 0825 GMT, March E-mini S&P 500 Index futures are trading 2598.25, down 15.00 or -0.57%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The index is up nine sessions from its last main bottom so it is inside the window of time for a closing price reversal top.

A trade through 2626.25 will signal a resumption of the uptrend with the main top at 2690.50 the next major upside target. The main trend will change to down on a move through 2438.50.

The minor trend is also up. The new minor top is 2626.25. Taking out this top will signal a resumption of the uptrend. The minor trend will change to down on a trade through 2560.50.

The minor range is 2560.50 to 2626.25. Its 50% level or pivot is 2593.25.

The main range is 2690.50 2316.75. Its retracement zone is 2547.75 to 2503.50.

The short-term range is 2438.50 to 2626.25. Its 50% level is 2532.25.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of March E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to the pivot at 2593.25.

Bullish Scenario

A sustained move over 2593.25 will indicate the presence of buyers. This could lead to a retest of 2626.25. Taking out this level could trigger an acceleration to the upside. The daily chart indicates there is plenty of room to the upside with the next target the main top at 2690.50.

Bearish Scenario

A sustained move under 2593.25 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next targets 2560.50 and 2547.75.