E-mini S&P 500 Index (ES) Futures Technical Analysis – Momentum Buying Drives Index to Record High

March E-mini S&P 500 Index futures reached a record high on Thursday, driven by the release of stronger-than-expected U.S. jobs data. According to ADP and Moody’s Analytics, the U.S. private sector added 250,000 jobs in December. Investors were looking for an increase of 190,000. The index was primarily supported by a 1.2 percent rise in the financial sector.

 

The main trend is up according to the swing chart. It is not in a position to change the main trend to down, but it is still vulnerable to periodic closing price reversal tops.

The nearest support is a steep uptrending Gann angle at 2715.75. This angle, moving up at a rate of 16 points per day from the 2667.75 main bottom, has been guiding the market higher since December 29.

There are no upside targets because the rally is being driven by momentum. When the buying pressure stops, the market will either form a higher-high, lower-close or start to form an “M” top.

If the angle at 2715.75 fails then longer-term angles are likely to pick up the support at 2703.75 and 2698.50.