E-mini S&P 500 Index (ES) Futures Technical Analysis – March 5, 2018 Forecast

March E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The negative sentiment in the market is being fueled by the recent tariff announcements made by President Trump.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2647.00 will signal a resumption of the downtrend. If the selling pressure continues to build over the near-term, we could see an eventual move into the February 6 main bottom at 2529.00.

A trade through 2789.75 will change the main trend to up. The next target after that is 2878.50.

The main range is 2878.50 to 2529.00. Its retracement zone at 2703.75 to 2745.00 is controlling the longer-term direction of the index. It is currently resistance. This is helping to give the index a downside bias.

The short-term range is 2529.00 to 2789.75. Its retracement zone at 2659.25 to 2628.50 is acting like support. This zone is controlling the short-term direction of the index. It stopped the selling on March 2 at 2647.00.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the short-term 50% level at 2659.25.

A sustained move over 2659.25 will signal the presence of buyers. If this generates enough upside momentum, we could see a move into 2703.75. This is a potential trigger point for an acceleration into 2745.00.

A sustained move under 2659.25 will indicate the presence of sellers. This move could create the downside momentum needed to challenge 2647.00 then 2628.50. The latter is the trigger point for an acceleration to the downside with 2529.00 the next likely downside target.

Holding inside the retracement zones at 2659.25 to 2628.50 and 2703.75 to 2745.00 will lead to a choppy, two-sided trade.