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E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3290.00, Weakens Under 3275.00

By:
James Hyerczyk
Published: Feb 4, 2020, 20:48 UTC

March E-mini S&P 500 Index futures are trading sharply higher late Tuesday as stocks continue to recover from the recent sell-off related to early

E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3290.00, Weakens Under 3275.00

March E-mini S&P 500 Index futures are trading sharply higher late Tuesday as stocks continue to recover from the recent sell-off related to early concerns over China’s fast-spreading coronavirus. The futures market is trading higher despite a climbing death toll from the virus and despite disappointing earnings from Alphabet after the bell on Monday.

At 19:32 GMT, March E-mini S&P 500 Index futures are trading 3302.50, up 57.00 or +1.76%.

Daily March E-mini S&P 500 Index

Helping to ignite the rally on Monday was the news that the People’s Bank of China said it was injecting 1.2 trillion yuan ($174 billion) worth of liquidity into the markets via reverse repo operations on Monday.

In other news, factory orders rose 1.8% in December, the Commerce Department said Tuesday. Traders were looking for a 1.5% increase.

 

Daily Technical Analysis

The main trend is up according to the daily swing chart. It turned up earlier in the session when buyers took out the previous main top at 3297.50. The main trend changes to down on a move through 3212.75.

The short-term range is 3337.50 to 3212.75. Its retracement zone is 3275.00 to 3290.00. This zone is controlling the near-term direction of the index.

The major support is the retracement zone at 3204.25 to 3172.75.

Short-Term Outlook

Based on the early price action and the current price at 3302.50, the direction of the March E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the downtrending Gann angle at 3301.50.

Bullish Scenario

A sustained move over 3301.50 will indicate the presence of buyers. This could trigger a late session surge into the next downtrending Gann angle at 3217.00. The last downtrending Gann angle before the 3337.50 main top comes in at 3328.50.

Bearish Scenario

A sustained move under 3301.50 will signal the presence of sellers. The first downside target is the short-term Fibonacci level at 3289.75. This is followed by the short-term 50% level at 3275.00.

If 3275.00 fails as support then look for the selling to possibly extend into the short-term uptrending Gann angle at 3253.00.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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