If buyers fail to come in at 2821.25 or the market turns lower then look for increased selling pressure. If momentum increases on the move then look for the weakness to possibly extend into the major uptrending Gann angle at 2786.00 today.
March E-mini S&P 500 Index futures are trading lower shortly before the cash-market opening. Sellers are reacting to reports that a trade meeting between U.S. President Donald Trump and Chinese President Xi Jinping has been pushed back. This news raised concerns about the progress of U.S.-China trade talks. Earlier in the session, Trump dampened the optimism surrounding a trade deal when he said he was in no hurry to form an agreement.
At 13:30 GMT, March E-mini S&P 500 Index futures are trading 2810.50, down 4.00 or -0.12%.
The main trend is up according to the daily swing chart. The trend turned higher on Wednesday after buyers took out the last main top at 2819.75. This also negated the closing price reversal top from earlier in the month.
A trade through yesterday’s high at 2821.25 will signal a resumption of the uptrend. This could lead to a test of the November 18 main top at 2824.50. Traders should also watch for a potentially bearish closing price reversal top. This won’t change the main trend to down, but it could trigger the start of a 2 to 3 day correction.
Look for upside momentum to increase on a sustained move over 2821.25 with 2824.50 the first target. This is a potential trigger point for an acceleration to the upside with the October 17 main top at 2831.25 the next potential upside target.
If buyers fail to come in at 2821.25 or the market turns lower then look for increased selling pressure. If momentum increases on the move then look for the weakness to possibly extend into the major uptrending Gann angle at 2786.00 today.
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.