E-mini S&P 500 Index (ES) Futures Technical Analysis – Sellers Targeting 2995.00 to 2861.50

March E-mini S&P 500 Index futures are expected to open lower on Thursday based on the pre-market trade. The move comes after yesterday’s massive relief rally was fueled by several factors including several primary wins by Democratic presidential candidate Joe Biden and better than expected U.S. economic data.

Today’s weakness is being fueled by worries over the impact of the coronavirus on the U.S. economy. These concerns are strong enough for investors to price in an additional 25 basis point rate cut by the Fed at its regular meeting later in the month. Earlier in the week, central bank policymakers made an emergency 50 basis point rate cut after they saw threats to the economy. This news spooked investors into selling.

At 13:14 GMT, March E-mini S&P 500 Index futures are trading 3057.25, down 58.50 or -1.85%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2853.25 will signal a resumption of the downtrend. A move through 3397.50 will change the main trend to up.

The short-term range is 3397.50 to 2853.25. Its retracement zone at 3125.50 to 3189.75 is resistance. This area stopped the buying on Tuesday at 3137.00.

The minor range is 2853.25 to 3137.00. Its retracement zone at 2995.00 to 2961.50 is the nearest support area.

The major support zone comes in at 2876.75 to 2753.75. This zone stopped the selling last Friday at 2853.25.

Daily Technical Forecast

Based on the early price action and the current price at 3057.25, the direction of the March E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 3077.50.

Bearish Scenario

A sustained move under 3077.50 will indicate the presence of sellers. This could trigger a break into a 50% level at 2995.00, followed by an uptrending Gann angle at 2981.25 and a Fibonacci level at 2961.50.

Bullish Scenario

A sustained move over 3077.50 will signal the presence of buyers. Overcoming the steep uptrending Gann angle at 3109.25 will indicate the buying is getting stronger. This is followed by a 50% level at 3125.50 and a minor top at 3137.00.

Overcoming 3137.00 could trigger an acceleration to the upside with a Fibonacci level at 3189.75 the next potential upside target.

Overtaking 3189.75 will put the index in a strong position.