E-mini S&P 500 Index (ES) Futures Technical Analysis – January 5, 2018 Forecast

March E-mini S&P 500 Index futures are expected to open higher based on the pre-market session. Stocks are trading higher after the Non-Farm Payrolls report showed the economy added few jobs than forecast. A weakening jobs market could encourage the Fed to lower the number of rate hikes this year which would be bullish for stocks.

Daily Technical Analysis

The main trend is up according to the daily swing chart. There is no resistance at this time, but the index begins the session in the window of time for a potentially bearish closing price reversal top.

Daily Technical Forecast

Based on the earlier price action, the direction of the index will be determined by trader reaction to a steep uptrending Gann angle at 2731.75.

A sustained move over 2731.75 will signal the presence of buyers.

The inability to overcome 2731.75 will indicate the presence of sellers. However, the index is not likely to start showing serious selling pressure until it breaks under yesterday’s close at 2723.75. At this point, it will be in a position to post a potentially bearish closing price reversal top.

If formed today then confirmed next week, the closing price reversal top is capable of triggering a 2 to 3 day correction of about 50% of the last rally. It will not necessarily mean the trend is changing to down. It may only give investor a chance to alleviate some of the excessive upside pressure that has been building.

If the index starts to pull away to the downside from the uptrending Gann angle then look for a possible move into a series of uptrending Gann angles at 2707.75, 2702.50 and 2700.75.