E-mini S&P 500 Index (ES) Futures Technical Analysis – January 28, 2019 Forecast

Based on the early trade and the current price at 2649.50, the direction of the March E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 2652.75.
James Hyerczyk
E-mini S&P 500 Index

The benchmark stock index is expected to open lower based on the pre-market trade. The selling is being fueled in part by disappointing earnings from Caterpillar. Monday begins one of the busiest weeks of the corporate earnings season with more than 100 S&P 500 companies scheduled to report, including Apple, Amazon and Facebook.

At 1318 GMT, March E-mini S&P 500 Index futures are trading 2649.50, down 14.00 or -0.53%.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2677.75 will signal a resumption of the uptrend. The main trend is safe for now. It will change to down on a trade through 2438.50.

The minor trend is also up. A trade through 2612.50 will change the minor trend to down. This will shift momentum to the downside. This is followed by two additional minor bottoms at 2596.50 and 2560.50.

The major retracement zone is 2636.00 to 2711.50. This zone is currently being tested. It is controlling the longer-term direction of the index.

The short-term range is 2438.50 to 2677.75. If the minor trend changes to down then its retracement zone at 2558.00 to 2530.00 will become the next downside target.

Daily Technical Forecast

Based on the early trade and the current price at 2649.50, the direction of the March E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 2652.75.

Bullish Scenario

Overcoming and sustaining a rally over 2652.75 will indicate the presence of buyers. The first upside targets are a pair of Gann angles at 2675.00 and 2678.50. Inside this zone is the main top at 2677.75. Overtaking 2678.50 could trigger an acceleration to the upside with targets coming in at 2690.50 and 2711.50.

Bearish Scenario

A sustained move under 2652.75 will signal the presence of sellers. The first downside target is the major 50% level at 2636.00.

Look for the selling pressure to increase under 2636.00. This could trigger an eventual break to the support cluster at 2558.50 to 2558.00.

We could see an acceleration to the downside under 2636.00, or we could see a labored break because of the minor bottoms at 2612.50, 2596.50 and 2560.50.

Today’s Gann angles basically suggest to look for a downside bias on a sustained break under 2652.75 and to look for an upside bias to develop on a sustained move over 2678.50.

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