E-mini S&P 500 Index (ES) Futures Technical Analysis – January 8, 2019 Forecast

Based on the earlier price action, the direction of the March E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 2572.75.
James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

March E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The rally is being fueled by hopes of an early settlement of the US-China trade dispute and the possibility the Fed may pause its current rate tightening cycle. The market is also trading at a point on the chart where it could start accelerating to the upside.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the main top at 2690.50. The main trend will change to down on a trade through 2438.50.

The main range is 2690.50 to 2316.75. Its retracement zone is 2503.50 to 2547.75. The market is currently trading on the strong side of this retracement zone, helping to support the upside bias. These two levels are also new support.

The swing chart projects 2644.75 as a possible upside target.

Daily Technical Forecast

Based on the earlier price action, the direction of the March E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 2572.75.

Bullish Scenario

Overtaking and sustaining a rally over 2572.75 will indicate the presence of buyers. If this creates enough upside momentum then we could see a blast into the downtrending angle at 2622.50. This is followed by the swing chart target at 2644.50 and the next downtrending Gann angle at 2656.50.

Bearish Scenario

The inability to overcome 2572.75 will signal the presence of sellers. This could trigger a pullback into a downtrending Gann angle at 2554.50. This is followed by the Fibonacci level at 2547.75.

Look for a potential acceleration to the downside if 2547.75 fails as support. This could trigger a steep break into 2503.50 to 2502.50.

Basically, look for the index to strengthen over 2572.75 and to weaken under 2547.75.

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