E-mini S&P 500 Index (ES) Futures Technical Analysis – January 19, 2018 Forecast

March E-mini S&P 500 Index futures are trading higher shortly before the cash market opening amid nervousness due to the possibility of a government shutdown.

On Thursday night, however, the House passed a bill to avoid a government shutdown, forwarding it to the Senate. Sixty votes are needed from the Senate to pass the spending bill in order to get it sent to President Donald Trump’s desk.

Congress has to pass the bill by the end of Friday to avoid a shutdown.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but volume and momentum has slowed considerably the last two sessions. A trade through 2809.50 will signal a resumption of the uptrend.

The market isn’t in a position to change the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top.

The short-term range is 2736.50 to 2809.50. Its retracement zone at 2773.00 to 2764.25 is the first downside target.

Daily Technical Forecast

Based on the early trade, the session begins with the market in the middle of nowhere on the daily chart. This is probably because today will be a news driven session and traders are non-committal.

On the upside, the nearest target is 2809.50. On the downside, the first target is an uptrending Gann angle at 2832.50. This is followed by a support cluster at 2773.00 to 2771.75.

Taking out 2771.75 could drive the index into 2764.25. This is the trigger point for an acceleration to the downside.