Based on the early price action and the upside momentum, the first target is an uptrending Gann angle at 2604.75. Overtaking this angle will indicate the buying is getting stronger with the next target a downtrending Gann angle at 2618.50.
March E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. Traders are hopeful of a resolution to the U.S.-China trade dispute. Traders will also get the chance to respond to comments from several Fed policymakers. Furthermore, the Fed will release its December monetary policy meeting minutes at 1900 GMT.
At 1400 GMT, March E-mini S&P 500 Index futures are trading 2583.50, up 11.00 or +0.43%.
The main trend is up according to the daily swing chart. The current chart pattern projects a target of 2644.75 this week.
The nearest upside target is the main top at 2690.25. A trade through 2438.50 will change the main trend to down.
The main range is 2690.50 to 2316.75. Its retracement zone is 2547.75 to 2503.50. This zone is new support. Trading above this zone is also helping to generate upside momentum.
Based on the early price action and the upside momentum, the first target is an uptrending Gann angle at 2604.75. Overtaking this angle will indicate the buying is getting stronger with the next target a downtrending Gann angle at 2618.50.
Look for a technical bounce on the first test of 2618.50. Overtaking it, however, could trigger an acceleration to the upside with 2644.75 the next target. This is followed closely by another downtrending Gann angle at 2654.50. This is the last potential resistance angle before the 2690.50 main top.
The nearest downside target is the main Fibonacci level at 2547.75. Since the main trend is up, buyers could come in on the first test of this level. This is followed by a short-term uptrending Gann angle at 2534.50. If this fails then we’re likely to see the selling extend into the main 50% level at 2503.50.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.