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E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3259.25, Weakens Under 3240.75

Based on the early price action and the current price at 3256.50, 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 short-term 50% level at 3259.25.
James Hyerczyk

March E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Tuesday. Investors are trying to regain their footing after stocks posted their biggest decline in more than three months on Monday.

Despite the early strength, the buying still appears to be tentative due to lingering fears over a possible coronavirus outbreak. Helping to put a lid on the rally were disappointing earnings results from Pfizer and 3 M.

At 14:36 GMT, March E-mini S&P 500 Index futures are trading 3256.50, up 17.00 or +0.49%.

Look for potential volatility after the close with Apple reporting quarterly earnings results.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 3181.00 will change the minor trend to down. A move through 3337.50 will signal a resumption of the uptrend.

The minor trend is down. This is guiding the momentum lower.

The short-term range is 3181.00 to 3337.50. The market is currently trading inside its retracement zone at 3259.25 to 3240.75. Trader reaction to this zone will determine the near-term direction of the market.

The main range is 3071.00 to 3337.50. Its retracement zone at 3204.25 to 3172.75 is the next potential downside target. This zone represents value so buyers could step in on a test of this area.

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Daily Technical Forecast

Based on the early price action and the current price at 3256.50, 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 short-term 50% level at 3259.25.

Bullish Scenario

A sustained move over 3259.25 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at 3273.50.

Overcoming 3273.50 will indicate the buying is getting stronger with potential upside targets coming in at 3285.00 and 3305.50.

Bearish Scenario

A sustained move under 3259.25 will signal the presence of sellers. The first downside target is a Fibonacci level at 3240.75. This is followed by a short-term uptrending Gann angle at 3233.00.

A move through 3233.00 will indicate the selling is getting stronger. This could drive the market into a longer-term uptrending Gann angle at 3219.00. Look for buyers on the first test of this angle.

If 3219.00 fails as support then look for the selling to extend into the major retracement zone at 3204.25 to 3172.75.

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