E-mini S&P 500 Index (ES) Futures Technical Analysis – January 24, 2017 Forecast

March E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The market is posting an inside move which suggests investor indecision and impending volatility.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2277.00 will signal a resumption of the uptrend. The main trend will turn down on a trade through the 2228.00 main bottom.

Minor tops include 2272.75 and 2273.50. Minor bottoms come in at 2251.75 and 2248.50.

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

The main range is 2228.00 to 2277.00. Its retracement zone at 2252.50 to 2246.75 is the primary downside target. This zone was tested successfully on January 11 at 2248.50 and on January 23 at 2251.75.

Forecast

Based on the current price at 2261.50 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the pivot at 2262.75.

A sustained move under 2262.75 will indicate the presence of sellers. This could drive the market into the uptrending angle at 2198.00. If this angle fails then look for a possible acceleration into 2252.50 and 2251.75. This is followed by 2248.50 and 2246.75.

A sustained move over 2262.75 will signal the presence of buyers. The first upside target angle comes in at 2266.00. This is the trigger point for an acceleration into the next downtrending angle at 2271.50. This is the last potential resistance angle before the minor tops at 2272.75 and 2273.50 and the main top at 2277.00.

Look for a strong upside bias on a sustained move over 2266.00 and a strong downside bias on a sustained move under 2198.00.