E-mini S&P 500 Index (ES) Futures Technical Analysis – January 18, 2017 Forecast

March E-mini S&P 500 Index futures are trading higher during the pre-market session. The index is also posting an inside day, indicating investor indecision and impending volatility. Today, investors will be dealing with a report on consumer inflation at 1330 GMT and Fed Chair Janet Yellen at 2000 GMT. However, the main focus for investors remains Trump’s economic policies and whether he can put them in motion in a timely manner.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2277.00 will turn the main trend to up. A move through 2248.50 will turn the minor trend to down.

The short-term range is 2277.00 to 2248.50. Its 50% level or pivot is 2262.75. This price is controlling the short-term direction of the market.

The main range is 2228.00 to 2277.00. If there is a sell-off then its retracement zone at 2252.50 to 2246.75 will become the primary downside target.

Forecast

Based on the current price at 2265.25 and the early price action, the direction of the market today is likely to be determined by trader reaction to a support cluster at 2263.00 to 2262.75. This area was tested earlier in the session.

A sustained move over 2263.00 will indicate the presence of buyers. This could generate enough upside momentum to challenge a downtrending angle at 2270.00. This is followed by a series of potential resistance levels at 2272.00, 2273.50 and 2277.00.

The downside is more wide open. A sustained move under 2262.75 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target the low at 2257.25. Taking out this level could lead to tests of 2252.50 and 2250.00.

Look for an upside bias on a sustained move over 2263.00 and a downside bias on a sustained move under 2262.75.