E-mini S&P 500 Index (ES) Futures Technical Analysis – March 14, 2018 Forecast

June E-mini S&P 500 Index futures are trading higher shortly before the cash market opening, following the release of weaker-than-expected U.S. Producer Inflation and Retail Sales. The results of the reports suggest a series of gradual rate hikes from the Fed this year. Gains could be limited by concerns over protectionism in the Trump Administration.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, yesterday’s closing price reversal top and subsequent confirmation today indicate a possible shift in momentum to the downside.

A trade through 2807.25 will negate the closing price reversal top and signal a resumption of the uptrend.

The main range is 2883.25 to 2532.50. Its retracement zone at 2749.25 to 2707.75 is the first downside target. This zone could act like support. Holding above this zone will give the market a slight upside bias.

Inside the main retracement zone is the short-term 50% level at 2729.50. This level is capable of attracting buyers.

Daily Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the steep uptrending Gann angle at 2779.75.

A sustained move over 2779.75 will indicate the presence of buyers. This could create the upside momentum needed to challenge 2807.25, followed by a long-term downtrending Gann angle at 2821.25.

A sustained move under 2779.75 will signal the presence of sellers. This could lead to a test of 2749.25. Taking out this level could extend the selling into 2729.50 then an uptrending Gann angle at 2715.75.