E-mini S&P 500 Index (ES) Futures Technical Analysis – March 23, 2017 Forecast

June E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The index is being supported by reports that the White House may have bowed to pressure and may be willing to offer a few concessions to those who oppose the Republican Healthcare package.

Stocks should rally if the new healthcare bill is passed into law. If the vote fails then look for further downside pressure.

Technical Analysis

The trend is down according to the daily swing chart. However, yesterday’s closing price reversal bottom and today’s confirmation rally suggests momentum may be getting ready to shift to the upside.

A trade through 2332.25 will negate the closing price reversal bottom and signal a resumption of the selling pressure. A trade through 2388.75 will change the main trend to up.

The main range is 2257.25 to 2397.25. Its retracement zone at 2327.25 to 2310.75 is the primary downside target.

The short-term range is 2388.75 to 2332.25. Its retracement zone at 2360.50 to 2367.25 is the primary upside target.

Forecast

Based on the current price at 2347.00 and the early price action, the direction of the index today is likely to be triggered by trader reaction to the steep downtrending angle at 2348.75.

Taking out 2348.75 will signal the presence of buyers and could create enough upside momentum to challenge a series of resistance levels at 2360.50, 2367.25 and 2368.75.

The trigger point for a further rally is 2368.75. Taking out this angle with conviction could trigger a rally into the downtrending angle at 2381.25.

The inability to overcome 2348.75 will indicate the presence of sellers. This could create enough downside momentum to challenge yesterday’s low at 2332.25. This is followed closely by a long-term uptrending angle at 2329.25, followed by the major 50% level at 2327.25.

If 2327.25 fails as support then look out to the downside since the next potential support doesn’t come in until 2310.75.

Watch the price action and read the order flow at 2348.75 all session. This is the most important pivot angle today.