E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 2690.50 Will Set Tone into Close

March E-mini S&P 500 Index futures are trading sharply higher at the mid-session. Investors bought with both hands shortly after the early session opening and never looked back.

Despite Friday’s steep sell-off and closing price reversal top, there was no follow-through to the downside so the chart pattern was never confirmed. Additionally, momentum remained in an uptrend.

The main trend is also up according to the daily swing chart. A trade through 2698.25 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through 2667.75 will confirm the closing price reversal top and signal that momentum has shifted to the downside.

The main range is 2651.75 to 2698.25. Its retracement zone is 2675.00 to 2669.50. The upper or 50% level provided support shortly after the opening.

The short-term range is 2698.25 to 2667.75. Its 50% level or pivot is 2683.00. The market is currently trading on the strong side of this pivot, giving it a solid upside bias into the last half of the session.

Based on the current price at 2690.50, the direction of the index into the close is likely to be determined by trader reaction to the uptrending Gann angle at 2690.50.

A sustained move over 2690.50 will indicate that buyers are still coming in to support the rally. This could drive the index into the next uptrending Gann angle at 2695.75. Crossing over to the strong side of this angle and sustaining the rally will put the index in an extremely strong position with the next target 2698.25.

A sustained move under 2690.50 will signal the presence of sellers. If they come in strong enough, we could see a break back to the pivot at 2683.00, followed closely by an uptrending Gann angle at 2680.50.

The major support is the retracement zone at 2675.00 to 2669.50.