E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 3223.00 Will Determine Direction

March E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Traders remain optimistic about the U.S.-China trade deal amid chatter that Chinese officials will be arriving in Washington later this week to sign the agreement. Year-end profit-taking and portfolio rebalancing may be behind this week’s weakness.

At 12:55 GMT, March E-mini S&P 500 Index are trading 3221.50, down 2.00 or -0.06%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside earlier this week following Friday’s closing price reversal top and yesterday’s subsequent confirmation of the chart pattern.

A trade through 3254.00 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will officially turn lower on a trade through the last main bottom at 3071.00.

The minor trend is down. It turned down on Monday. This move confirmed the shift in momentum.

The first minor range is 3254.00 to 3217.25. Its 50% level at 3235.75 is potential resistance.

The second minor range is 3192.00 to 3254.00. Its 50% level at 3223.00 is currently being straddled.

The third main range is 3118.25 to 3254.00. Its retracement zone at 3186.00 to 3170.00 is another downside target and value zone.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the price cluster at 3223.00.

Bullish Scenario

A sustained move over 3223.00 will indicate the presence of buyers. The first two upside targets are 3230.25 and 3235.75.

Overtaking 3235.75 could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 3223.00 will signal the presence of sellers. The first target is yesterday’s low at 3217.25. This is a potential trigger point for an acceleration to the downside with the next targets a minor bottom at 3192.00, and a 50% level at 3186.00.