E-mini S&P 500 Index (ES) Futures Technical Analysis – March 23, 2018 Forecast

June E-mini S&P 500 Index futures erased their huge overnight losses and are now in a position to close higher for the session.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on the trade through 2651.75 on Thursday. Overcoming this level will indicate the selling pressure is weakening and the short-covering and speculative buying is getting stronger.

A trade through 2617.00 will indicate the return of sellers. If the downside momentum increases on this move then look for a possible acceleration to the downside with 2532.50 the next major target.

The short-term retracement zone is 2532.50 to 2807.25. Its retracement zone at 2670.00 to 2637.50 is currently being tested. This zone could act like a pivot today.

The main range is 2883.25 to 2532.50. Its retracement zone at 2708.00 to 2749.25. If the short-covering rally gains traction then this zone will become the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to 2637.50.

A sustained move over 2637.50 will indicate the presence of buyers. This could lead to a test of 2670.00. This price is a potential trigger point for an acceleration into 2708.00.

A sustained move under 2737.50 will signal the presence of sellers. This should lead to a retest of 2617.00. This is a possible trigger point for an acceleration to the downside.

Today’s session begins with the index down 8 days from its last main top. This puts it in the window of time for a closing price reversal bottom.