E-mini S&P 500 Index (ES) Futures Technical Analysis – Nearest Value Zone is 3126.25 – 3062.25

March E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. An early session attempt by bargain-hunters failed to attract enough buyers to sustain the rally, leading to a break through yesterday’s low.

Sellers are being primarily influenced by the surge in coronavirus cases outside of China which are a threat to the global economy. Weaker-than-expected U.S. consumer confidence data also contributed to the selling pressure.

At 15:33 GMT, March E-mini S&P 500 Index futures are trading 3202.00, down 24.25 or -0.75%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Monday when sellers took out the swing bottom at 3303.50. The downtrend was reaffirmed on a trade through the next main bottom at 3212.75.

The main range is 2855.00 to 3397.50. Its retracement zone at 3126.25 to 3062.25 is the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at 3202.00, the direction of the March E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at 3247.50.

Bearish Scenario

A sustained move under 3247.50 will indicate the presence of sellers. If this move is able to generate enough downside momentum, we could easily see an extended break into the main 50% level at 3126.25.

Watch for a technical bounce on the first test of 3162.25. If it fails then look for the selling to possibly extend into the Fibonacci level at 3062.25, followed closely by another long-term uptrending Gann angle at 3051.50.

Bullish Scenario

Overtaking 3247.50 will suggest the return of buyers. This could generate the upside momentum needed to challenge the steep downtrending Gann angle at 3301.50. Since the trend is down, sellers are likely to come in on a test of this angle. Taking it out, however, could drive the index into the next downtrending Gann angle at 3349.50.