E-mini S&P 500 Index (ES) Futures Technical Analysis – March 19, 2019 Forecast

June E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The benchmark index is being underpinned by expectations the Federal Reserve will continue with its “patient” mantra when it makes its interest rate and monetary policy decisions on Wednesday. Going into the meeting, investor expectations for a rate hike are at zero, with most pricing in no change in policy.

At 14:28 GMT, June E-mini S&P 500 Index futures are trading 2849.25, up 8.75 or +0.31%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the week when buyers took out the previous main top at 2825.75. This level is new support.

The index is up seven sessions from the last main bottom at 2726.50. This puts it in the window of time for a closing price reversal top. The chart pattern won’t change the trend, but it will indicate the selling is greater than the buying at current price levels. If confirmed, this chart pattern could fuel the start of a 2 to 3 day correction.

Daily Technical Forecast

The key support today is a steep uptrending Gann angle at 2838.25. This angle, moving up 16 points per day from the March 8 main bottom at 2726.50, has been guiding the index higher for seven sessions. Look for the positive tone to continue as long as this angle holds as support.

Bullish Scenario

The daily chart is wide open to the upside with no major resistance coming in until 2961.25. If traders continue to follow the Gann angle support then look for a test of this level on March 29.

Bearish Scenario

The inability to hold 2838.25 as support will be a sign of weakness. If this move creates enough downside momentum then we could see an eventual break over the near-term into the next support angle at 2782.25 today. This angle is moving up at a rate of 8 points per day.

The next important level to watch is yesterday’s close at 2840.50. Moving below this level will put the index in a position to post a potentially bearish closing price reversal top.