E-mini S&P 500 Index (ES) Futures Technical Analysis – Rangebound on Average Volume

March E-mini S&P 500 Index futures are trading lower at the mid-session. The move is a reaction to the news that China may refrain from purchasing U.S. debt in the future. The weakness is just a knee-jerk reaction. The trend hasn’t changed. Money managers tend to pare positions on unexpected news until they can figure out the risks involved.

At 1716 GMT, the index is trading 2747.25, down 5.00 or -0.18%. Volume is average to below average.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2760.00 will signal a resumption of the uptrend.

The lower-low on the daily chart makes 2760.00 a new minor top.

The short-term range is 2667.75 to 2760.00. If the selling pressure continues, we could see a correction into its retracement zone at 2713.75 to 2703.00.

Daily Technical Forecast

Based on the current price action, the direction of the index into the close will be determined by momentum since the market isn’t near support or resistance.

If it does take out today’s intraday high, we could see a short-covering rally into the close.

If the intraday low is taken out, the market could break into a steep uptrending Gann angle at 1314.60. This is followed by the short-term 50% level at 2713.75.