E-mini S&P 500 Index (ES) Futures Technical Analysis – Stronger Over 2855.25, Weaker Under 2825.50

March E-mini S&P 500 Index futures posted a wide range on Wednesday before closing higher. The wicked price swings were fueled by worries about overvaluation and concerns about further U.S. protectionist policies.

Daily Swing Chart Forecast

The main trend is up according to the daily swing chart. A trade through 2855.25 will signal a resumption of the uptrend. The biggest concern for long investors should be the closing price reversal. A higher-high, lower-close could trigger the start of a 2 to 3 day correction.

Wednesday’s whip-saw price action made 2855.25 a new minor top. Taking out this top will make 2825.50 a new minor top.

The main range is 2667.75 to 2855.25. If there is a correction then its retracement zone at 2761.50 to 2739.25 will become the primary downside target.

Daily Swing Chart Forecast

While taking out 2855.25 will signal the presence of buyers, a move through this level, followed by a break under yesterday’s close at 2841.00 may be an indication that the selling is greater than the buying at current price levels.

Even without the higher-high, a move through yesterday’s low at 2825.50 will reaffirm the minor trend weakness. It won’t mean the minor or main trends are turning down, but it will definitely indicate the selling pressure is getting stronger.