E-mini S&P 500 Index (ES) Futures Technical Analysis – Momentum Shifts to Downside

March E-mini S&P 500 Index futures are trading sharply lower shortly ahead of the close on Monday. The internal data suggests short-selling, profit-taking and position-squaring into the end of the year is driving the price action. According to CNBC, some of the biggest winners of the year, including Microsoft, Visa, Nike, and Procter & Gamble, were all in the red on Monday.

At 20:38 GMT, March E-mini S&P 500 Index futures are trading 3222.50, down 15.00 or -0.46%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside when Friday’s closing price reversal top was confirmed. A trade through 3254.00 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is down. It turned to down when sellers took out the last minor bottom at 3222.50. This move confirmed the shift in momentum to the downside.

The minor range is 3192.00 to 3254.00. Its 50% level or pivot at 3223.00 was tested on Monday.

The main range is 3118.25 to 3254.00. Its retracement zone at 3186.00 to 3170.75 is the next downside target.

Daily Gann Angle Technical Analysis

Uptrending Gann angle support comes in at 3222.25 and 3215.00. These angles were tested on Monday. The first uptrending Gann angle forms a support cluster with the minor pivot at 3223.00 to 3222.25.

The two uptrending Gann angles, moving at a rate of 8 points per session, have been providing guidance since early December.

A trade through 3215.00 could trigger an acceleration to the downside with the next targets a minor bottom at 3192.00 and a short-term 50% level at 3186.75.

Side Notes

March E-mini S&P 500 Index futures could begin to pick up strength on a sustained move over the 50% level at 3223.00. However, a sustained move under 3215.00 sets up the market for a steep sell-off.