E-mini S&P 500 Index (ES) Futures Technical Analysis – Trade Through 2667.75 Confirms Closing Price Reversal Top

March E-mini S&P 500 Index futures closed lower on Friday after posting a dramatic closing price reversal top. The chart pattern does not indicate the trend is turning down, but it could be an early indication that the selling is greater than the buying at current price levels. Keep in mind that the move took place under extremely thin, pre-holiday trading conditions.

March E-mini S&P 500 Index futures settled at 2676.00, down 9.75 or -0.36%.

The main trend is up according to the daily swing. However, momentum may have shifted to the downside with the formation of the potentially bearish closing price reversal top.

A trade through 2698.25 will negate the chart pattern and signal a resumption of the uptrend. A move through 2667.75 will confirm the chart pattern.

The short-term range is 2651.75 to 2698.25. Its retracement zone at 2675.00 to 2669.50 is the first downside target. This zone was tested on Friday, but the market was able to close above it. Traders should treat this zone like support as well as a pivot area.

The main range is 2622.50 to 2698.25. Its retracement zone at 2660.25 to 2651.50 is the next downside target. Since the main trend is up, we could see a technical bounce on the first test of this zone. Don’t be surprised if buyers show up on a test of this zone to defend the uptrend.

The key price to watch is 2651.75. A trade through this level will change the main trend to down. This could create enough downside momentum to trigger an acceleration to the downside. The daily chart indicates there is plenty of room to the downside under 2651.75 with the next two major targets coming in at 2627.25 and 2622.50.