E-mini S&P 500 Index (ES) Futures Technical Analysis – January 25, 2017 Forecast

March E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The index is following through to the upside after yesterday’s strong gains. The move represents a shift in investor sentiment back to bullish after almost a month of sideways action due to uncertainty over Trump’s ability to run a government.

Technical Analysis

The main trend is up according to the daily swing chart. The market is far from turning the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top.

Now that the uptrend has resumed on the trade through the old top at 2277.00, a break back under this level will be another sign that the selling is greater than the buying at current price levels.

Forecast

Based on the current price at 2283.00, the direction of the index today is likely to be determined by trader reaction to the uptrending angle at 2280.50.

A sustained move over 2280.50 will indicate the presence of buyers. This will put the market in a bullish position.

A sustained move under 2280.50 will signal the return of sellers. This could lead to the start of a steep sell-off since the nearest support angle doesn’t come in until 2264.50.

Watch the price action and read the order flow at 2280.50 all session. This will tell us whether the buying is getting stronger or if sellers are regaining control.