E-mini S&P 500 Index (ES) Futures Technical Analysis – January 23, 2018 Forecast

March E-mini S&P 500 Index futures are called lower based on the pre-market trade. The government resumed operations today so all investors have to worry about are earnings.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early in the session when the index took out yesterday’s high.

Given the prolonged move up in terms of price and time, today’s session begins with the index in the window of time for a potentially bearish closing price reversal top. We’ve already had the higher-high, now all we need is the lower close to set the wheels in motion for a possible two to three day correction.

The number today is yesterday’s close at 2835.25. Holding above this level will indicate the presence of buyers. A sustained move under this level will signal that the selling is greater than the buying at current price levels. A close under this level will form the closing price reversal top.

On the upside, the nearest target is a steep uptrending Gann angle at 2864.50. Overtaking this angle and sustaining a move over this level will put the index in an extremely bullish position.

The nearest downside target is a steep uptrending Gann angle at 2800.50.

Look for a bullish tone on a sustained move over 2835.75. A bearish tone may develop on a sustained move under this level.