E-mini S&P 500 Index (ES) Futures Technical Analysis – Sitting in Extremely Bullish Position

Strong earnings continue to drive the March E-mini S&P 500 Index higher this week with the market showing no signs of letting up. Volume is strong and buyers seem to be shrugging off any potential bad news including a three-day government shutdown earlier this week.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. There is no resistance so it’s going to take a closing price reversal top to stop the rally. Based on this assessment, last week’s close at 2811.00 will determine the direction of the index this week.

Weekly Technical Forecast

The index has been following a steep uptrending Gann angle for 22 weeks. This angle, moving up at a rate of 16 points per week since the 2415.00 main bottom the week-ending August 25, comes in at 2767.50 this week. This angle is the key support.

Currently, the market is trading well above the angle. It’s actually starting to pull-away from it, suggesting the buying is getting stronger.

After posting another higher-high this week, bullish investors should keep an eye on last week’s close at 2811.00. Breaking back under this level will indicate the selling is greater than the buying at current price levels.

An eventual break of the uptrending Gann angle and a sustained move under it will be the strongest sign that momentum is starting to shift to the downside.