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E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold Above 3327.50 to Sustain Momentum

By:
James Hyerczyk
Updated: Feb 5, 2020, 14:05 UTC

In other news, ADP/Moody’s reported that private companies added 291,000 jobs in January versus 150,000 expected.

E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold Above 3327.50 to Sustain Momentum

March E-mini S&P 500 Index futures continue to climb on Wednesday and are now within striking distance of its all-time high.

After a flat opening, the benchmark index surged in the pre-market session after Reuters said a Chinese TV media outlet had reported that a research team at Zhejiang University had found an effective drug to treat people with the new coronavirus.

At 13:17 GMT, March E-mini S&P 500 Index futures are trading 3327.50, up 27.75 or +0.85%.

In other news, ADP/Moody’s reported that private companies added 291,000 jobs in January versus 150,000 expected. That was the best monthly gain since May 2015.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3337.50 will reaffirm the uptrend. The main trend changes to down on a move through 3212.75. This is not likely, but the current volatility makes the market susceptible to a closing price reversal top.

The current short-term range is 3337.50 to 3212.75. Its support is 3290.00 to 3275.00.

Daily Technical Forecast

Based on the early price action and the current price at 3327.50, the direction of the March E-mini S&P 500 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 3327.50. This is the last potential resistance angle before the 3337.50 main top.

Bullish Scenario

A sustained move over 3327.50 will indicate the buying is getting stronger. This could lead to a test of the main top at 3337.50. Taking out this level will reaffirm the uptrend with no resistance in sight.

Bearish Scenario

A sustained move under 3327.50 will signal the presence of sellers. This could lead to a labored break with potential downside targets lined up at 3317.50, 3397.50 and the retracement zone at 3290.00 to 3275.00.

A close below 3299.50 will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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