E-mini S&P 500 Index (ES) Futures Technical Analysis – Major Downside Target Zone is 3305.00 – 3283.25Based on the early price action, the direction of the March E-mini S&P 500 Index the rest of the session on Friday is likely to be determined by trader reaction to the short-term Fibonacci level at 3339.50.
March E-mini S&P 500 Index futures are trading lower shortly after the cash market opening on Friday after the number of new coronavirus cases escalated, fueling worries over a pronounced global economic slowdown. Friday’s loss put the benchmark index on pace for its first weekly decline in three weeks. The S&P 500 Index is being pressured mostly by a 2% drop in the tech sector.
At 15:54 GMT, March E-mini S&P 500 Index futures are at 3340.25, down 29.00 or -0.86%.
“Even if the outbreak recedes, global growth is still set to fall to zero in the first quarter, before bouncing back over the remainder of the year,” Peter Berezin, chief global strategist at BCA Research, said in a note. “Thus, a near-term hit to corporate earnings now looks unavoidable.”
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has shifted to the downside. A trade through 3397.50 will signal a resumption of the uptrend. A move through 3303.50 will change the main trend to down.
The minor trend is down. This is controlling the downside momentum.
The short-term range is 3303.50 to 3397.50. Its retracement zone at 3350.50 to 3339.50 is currently being tested.
The main range is 3212.75 to 3397.50. Its retracement zone at 3305.00 to 3283.25 is the next major downside target zone.
Daily Technical Forecast
Based on the early price action, the direction of the March E-mini S&P 500 Index the rest of the session on Friday is likely to be determined by trader reaction to the short-term Fibonacci level at 3339.50.
A sustained move under 3339.50 will indicate the presence of sellers. The next target is the uptrending Gann angle at 3324.75. Watch for a technical bounce on the first test of this angle.
If the angle at 3324.75 fails as support then look for a potential break into the retracement zone at 3305.00 to 3283.25. A trade through 3303.50 will change the main trend to down. Watch for a technical bounce on the first test of this zone.
A sustained move over 3339.50 will signal the presence of buyers. The next two upside targets are 3350.50 and a downtrending Gann angle at 3365.50. This is followed by additional Gann angle resistance at 3381.50 and 3389.50.