E-mini S&P 500 Index (ES) Futures Technical Analysis – January 3, 2019 Forecast

March E-mini S&P 500 Index futures are called lower based on the pre-market trade. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility.

Daily Technical Analysis

The main trend is down, but momentum has been trending higher since the formation of the closing price reversal bottom on December 26.

The minor trend is also down. A trade through 2523.00 will change the minor trend to up. This will also reaffirm the shift in momentum to up.

The main range is 2690.50 to 2316.75. Its retracement zone at 2503.75 to 2547.75 is acting like resistance. Trading below this zone is helping to give the market a downside bias today.

The short-term range is 2316.75 to 2523.00. Its retracement zone at 2419.75 to 2395.50 is the primary downside target.

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 a pair of Gann angles at 2476.75 and 2466.50.

Bullish Scenario

A sustained move over 2476.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive into the 50% level at 2503.75. Overtaking this level could extend the rally into the minor top at 2523.00, followed by the Fibonacci level at 2547.75.

Bearish Scenario

A sustained move under 2466.50 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next target the short-term 50% level at 2419.75. This is followed by a support cluster at 2396.75 to 2395.50.