E-mini S&P 500 Index (ES) Futures Technical Analysis – January 29, 2019 Forecast

The benchmark index is edging higher shortly before the cash market opening. The index is trading inside yesterday’s range which suggests investor indecision. Traders are shrugging off potentially negative earnings data from Pfizer and 3 M before the bell, but the primary focus for traders will be on the earnings report from Apple after the bell.

At 13:25 GMT, March E-mini S&P 500 Index futures are trading 2644.50, up 2.50 or +0.09%.

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. This is followed by the main top at 2690.50. The main trend 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 up. This will also shift momentum to the downside. This is followed by minor bottoms at 2596.50 and 2560.50.

The index is currently testing a major retracement zone at 2636.00 to 2711.50. This zone 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 look for the selling to continue into its retracement zone at 2558.00 to 2530.00.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index is likely to be determined by trader reaction to the major 50% level at 2636.00.

Bullish Scenario

A sustained move over 2636.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a move into the resistance cluster at 2668.75 to 2671.00. This could create a labored rally with targets at 2672.50, 2677.75 and 2694.50. Overcoming this angle could trigger a further rally into the major Fibonacci level at 2711.50.

Bearish Scenario

A sustained move under 2636.00 will signal the presence of sellers. The first downside target is the minor bottom at 2612.50. The selling pressure could increase under this level with the first target a minor bottom at 2596.50.

Taking out 2596.50 could trigger steep break into the uptrending Gann angle at 2566.50, followed by another minor bottom at 2560.50 and the short-term 50% level at 2558.00.