E-mini S&P 500 Index (ES) Futures Technical Analysis – Taking Out 3192.00 With Strong Volume Could Trigger Steep Break

March E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening. Investors appear to be following the leads in Asia and Europe with a low volume, lackluster trade. Traders are showing little reaction to the House of Representatives’ vote to impeach President Donald Trump for abuse of power and obstruction of Congress.

At 13:39 GMT, March E-mini S&P 500 Index futures are trading 3195.25, down 4.00 or -0.12%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the formation of the closing price reversal top on Tuesday is helping to slow down the upside momentum.

A trade through 3203.50 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 3192.00 will confirm the chart pattern. This could trigger the start of a 2 to 3 day correction.

The minor range is 3118.25 to 3203.50. Its retracement zone at 3160.75 to 3150.75 is the first downside target.

The main range is 3071.00 to 3203.50. Its retracement zone at 3137.25 to 3121.50 is the second downside target.

Daily Technical Forecast

Based on the price action this week, the direction of the March E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to 3192.00.

Bullish Scenario

A sustained move over 3192.00 will indicate that buyers are coming in to prevent a confirmation of the closing price reversal top. If this move creates enough upside momentum then look for a retest of 3203.50. Taking out this level could trigger an acceleration to the upside if there is a spike in volume.

Bearish Scenario

A sustained move under 3192.00 will signal the presence of sellers. This could trigger a break into a pair of uptrending Gann angles at 3174.25 and 3167.00. Since the main trend is up, watch for a technical bounce on the first test of these angles.

If 3167.00 fails as support then look for the selling to possibly extend into the short-term retracement zone at 3160.75 to 3150.75.