E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3235.00, Weakens Under 3227.75

March E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. Although the index was edging higher during the pre-market session, buyers just weren’t there after the opening to support a continuation of the move. Investors are blaming the growing political risks stemming from U.S.-Iran tensions for the weakness.

At 14:53 GMT, March E-mini S&P 500 Index futures are trading 3233.75, down 9.75 or -0.31%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It turned down last week when sellers took out 3213.00. A trade through 3263.50 will change the main trend to up. A move through 3206.75 will indicate a resumption of the selling pressure.

The minor range is 3263.50 to 3206.75. Its 50% level at 3235.00 is controlling the direction of the market today. Buyers are trying to drive the market into a new all-time high. Sellers are trying to form a secondary lower top.

The second minor range is 3192.00 to 3263.50. Its 50% level at 3227.75 is additional support.

The third minor retracement zone is 3190.75 to 3173.75. The main range retracement zone is 3167.25 to 3144.50. This zone represents value. If tested, it’s likely to draw the attention of buyers.

Daily Technical Forecast

Based on the early price action and the current price at 3233.75, the direction of the March E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at 3235.00.

Bullish Scenario

A sustained move over 3235.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally into the first uptrending Gann angle at 3255.00.

Overcoming 3255.00 will indicate the buying is getting stronger with another uptrending Gann angle at 3262.25 the next potential upside target. This is followed by the main top at 3263.50.

Bearish Scenario

A sustained move under 3235.00 will signal the presence of sellers. The next target is 3227.75. This is a potential trigger point for an acceleration into 3206.75, followed closely by a potential support cluster at 3190.75 to 3190.25. Look for buyers on the first test of this area.

If 3190.25 fails then look for the selling to possibly extend into 3173.75.