E-mini S&P 500 Index (ES) Futures Technical Analysis – Major Pivot Angle This Week is 2667.50

March E-mini S&P 500 Index futures closed higher last week. The rally was driven by a positive start to earnings season which was helped by strong performances in the banking and energy sectors. The rally was also fueled by the hope of an end to the ongoing trade dispute after it was reported that the two economic powerhouses may have offered concessions at their first round of mid-level talks in early January.

Last week, March E-mini S&P 500 Index futures settled at 2671.50, up 76.50 or +2.86%.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 2316.75 the week-ending December 28.

The minor trend is also down. A trade through 2819.00 will change the minor trend to up. This will confirm the shift in momentum.

The main range is 2955.50 to 2316.75. Its retracement zone at 2636.00 to 2711.50 is currently being tested. This zone is controlling the near-term direction of the market.

Weekly Technical Forecast

Based on last week’s close at 2671.50, the direction of the March E-mini S&P 500 Index this week is likely to be determined by the downtrending Gann angle at 2667.50.

Bullish Scenario

A sustained move over 2667.50 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the main Fibonacci level at 2711.50. Sellers could show up on the first test of this level. However, overcoming it could trigger an acceleration to the upside with the next major targets coming in at 2811.50 and 2819.00.

Bearish Scenario

A sustained move under 2667.50 will signal the presence of sellers. The first downside target is the main 50% level at 2636.00.

If 2636.00 fails as support then look for an acceleration to the downside with the next target angle coming in at 2572.75. This is another trigger point for a steep break.