E-mini S&P 500 Index (ES) Futures Technical Analysis – January 20, 2015 Forecast

March E-mini S&P 500 Index futures are called higher today based on the pre-market session. Stocks are being driven higher by a recovery in Asian stock markets. The primary catalyst for this move is the news that China’s fourth quarter gross domestic product beat expectations.

The main trend is down on the daily chart. The main range is 1961.50 to 2088.75. Its retracement zone at 2025.25 to 2010.00 is currently being tested. Trader reaction to this zone will set the tone of the market today.

The short-term range on the daily chart is 2062.00 to 1970.25. Its retracement zone is 2016.25 to 2027.00. This zone is also controlling the short-term direction of the index, which means we could see choppy trading conditions as long as the index remains between 2010.00 and 2027.00.

On the upside, additional resistance angles come in at 2028.75 and 2038.00.

The closest resistance cluster is at 2027.00 to 2028.75. Sellers may come in on the first test of this area, but traders have to watch the price action and order flow carefully since this area is also a trigger point for an upside breakout.

The main trend is up on the weekly chart. A trade through 1961.50 will turn the main trend to down. The main range is 1805.00 to 2088.75. This makes its retracement zone at 1946.75 to 1913.25 this week’s first major downside target.

The weekly pivot price is 2029.50. This price is controlling the short-term direction of the market.

Combining the daily and weekly charts creates a major area at 2027.00 to 2029.50. How traders react to this zone will set the tone for the day and perhaps the week.