E-mini S&P 500 Index (ES) Futures Technical Analysis – January 9, 2018 Forecast

March E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. Earlier today, the index posted a new record high. This is bullish if you’re a trend trader. If you are looking to go counter-trend then you should start watching for a potentially bearish closing price reversal top chart pattern.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high.

Based on the early price action, a trade back under yesterday’s close at 2746.75 will be the first sign that the selling may be greater than the buying at current price levels. A close under this level will form a closing price reversal top. This could trigger the start of a 2 to 3 correction.

The current short-term range is 2667.75 to 2749.00. If there is a correction then its retracement zone at 2708.25 to 2698.75 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to yesterday’s close at 2746.75.

A sustained move over 2746.75 will indicate that buyers are still coming in to support the market.

A sustained move under 2746.75 will signal the presence of sellers. The daily chart is wide open to the downside so if volume increases on the move, we could see an acceleration to the downside.

The first downside target is a support cluster at 2715.75, followed by 2710.50 and 2708.25.