E-mini S&P 500 Index (ES) Futures Technical Analysis – March 18, 2019 Forecast

June E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The price action suggests developing hope over a new trade deal between the United States and China. It also reflects expectations of a more accommodating U.S. Federal Reserve at this week’s meeting. Gains are being limited, however, by weakness in the Dow Jones Industrial Average, led by another sell-off in shares of Boeing.

At 14:07 GMT, June E-mini S&P 500 Index futures are trading 2830.00, up 0.25 or +0.02%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2836.50 will reaffirm the uptrend. The main trend will change to down on a trade through 2726.50.

Traders should also watch for a potentially bearish closing price reversal top chart pattern. This will indicate the presence of sellers. If confirmed, this chart pattern could trigger the start of a 2-3 day correction.

Daily Technical Forecast

Based on the early price action and the current price at 2830.00, the direction of the June E-mini S&P 500 Index the rest of the session will likely be determined by trader reaction to the October 17 main top at 2836.50.

Bullish Scenario

Overtaking and sustaining a really over 2836.50 will indicate the presence of buyers. The daily chart is wide open over this level with the September 21 main top at 2961.25, the next major upside target.

Bearish Scenario

A failure to overtake and sustain a rally over 2836.50 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the steep uptrending Gann angle at 2822.50.

The angle at 2822.50 is the trigger point for an acceleration to the downside with the next target angle coming in at 2774.50. Since the main trend is up, look for buyers on the first test of this angle.

The major long-term uptrending Gann angle support comes in at 2759.75.