Based on the current price at 2790.50, the direction of the March E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the steep uptrending Gann angle at 2793.00.
March E-mini S&P 500 Index futures are trading sharply higher at the mid-session on Friday. The benchmark index is being underpinned by gains in the technology sector, which are being driven by a strong performance in shares of Intel. Optimism that the U.S. and China are close to reaching a trade deal is also helping to generate today’s upside bias.
At 17:38 GMT, March E-mini S&P 500 Index futures are trading 2790.50, up 16.50 or +0.59%.
The main trend is up according to the daily swing chart. A trade through 2798.00 will signal a resumption of the uptrend after posting a closing price reversal top on Thursday.
A move through 2764.25 will confirm the closing price reversal top. This could lead to a 2 to 3 day correction.
The short-term range is 2729.00 to 2798.00. Its retracement zone at 2763.50 to 2755.25 is the primary downside target.
Based on the current price at 2790.50, the direction of the March E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the steep uptrending Gann angle at 2793.00.
Overtaking and sustaining a rally over 2793.00 will indicate the presence of buyers. The first upside target is 2798.00. This price is a potential trigger point for an acceleration to the upside with the next major target the December 3 main top at 2819.00.
The inability to overcome 2793.00 and a sustained move under this level will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with the next major target the short-term 50% level at 2763.50. This is followed closely by the short-term uptrending Gann angle at 2761.00.
If 2761.00 fails then look for the selling to extend into the short-term Fibonacci level at 2755.25, followed by a longer-term uptrending Gann angle at 2752.75.
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.