March E-mini S&P 500 Index futures are called lower based on the pre-market trade. The market posted a record high earlier in the session then turned lower. This puts the index in a positon to form a potentially bearish closing price reversal top.
This chart pattern doesn’t mean the trend is getting ready to turn down, but it could lead to the start of a 2 to 3 day correction of at least 50% of the last rally.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 2747.75 will signal a resumption of the uptrend.
A close under 2742.50 will form a closing price reversal top. This could trigger a break into the retracement zone at 2707.75 to 2698.25.
Daily Technical Forecast
Based on the early price action, the direction of the index today is likely to be determined by trader reaction to the steep uptrending Gann angle at 2747.75.
A sustained move under 2747.75 will indicate the presence of sellers. The daily chart is wide open to the downside with a cluster of angles at 2711.75, 2706.50 and 2701.75 the next potential targets.
Overtaking and sustaining the rally over 2747.75 will put the index in an extremely bullish position.