E-mini S&P 500 Index (ES) Futures Technical Analysis – March 20, 2017 Forecast

June E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Investors are paring positions due to the uncertainty over the Trump administration policies especially in regards to healthcare. Financial stocks are also feeling some heat from the Fed’s decision to increase interest rates gradually.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is shifting to the downside with the formation of the secondary lower top at 2388.75.

A trade through 2351.00 will turn the main trend to down. A move through 2388.75 will signal a resumption of the uptrend with 2397.25 the next likely target.

The market is currently trading inside a pair of ranges at 2397.25 to 2351.00 and 2351.00 to 2388.75. Their 50% levels come in at 2374.25 and 2369.75. Trader reaction to the 50% levels will determine the direction of the index today.

Forecast

Based on the current price at 2372.75, look for an upside bias over 2374.25 and a downside bias under 2369.75.

A sustained move over 2374.25 will indicate the presence of buyers. This could drive the index into 2380.75. This is followed by a downtrending angle at 2384.75, the main top at 2388.75 and another downtrending angle at 2390.75. This is the last potential resistance angle before the 2397.25 main top.

A sustained move under 2369.75 will signal the presence of sellers. The next target is an uptrending angle at 2365.00. This is followed by another uptrending angle at 2358.00. This is the last potential support angle before the 2351.00 main bottom.

Taking out 2351.00 will change the main trend to down and could trigger an acceleration to the downside with 2327.25 the next major target.