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E-mini S&P 500 Index (ES) Futures Technical Analysis – Watch 3259.25-3257.00 into Close

By:
James Hyerczyk
Updated: Jan 31, 2020, 13:54 UTC

Conditions appear to be worsening and the sell-off could accelerate on February 3 when China’s Shanghai Exchange reopens after the extended Lunar New Year holiday.

E-mini S&P 500 Index (ES) Futures Technical Analysis – Watch 3259.25-3257.00 into Close

March E-mini S&P 500 Index futures are trading lower late in the session on Thursday as the death toll from the coronavirus continues to rise in China, stoking fears about the virus’ impact on global economic growth.

A Gross Domestic Product report showing 2019 had the slowest economic growth in three years and a plunge in Facebook shares also weighed on investor sentiment.

At 19:52 GMT, March E-mini S&P 500 Index futures are trading at 3257.50, down 15.00 or -0.46%.

BREAKING NEWS:  The World Health Organization said the fast-spreading coronavirus that’s infected more than 8,200 across the world is a global health emergency. The rare designation will help the international agency mobilize financial and political support to contain the outbreak.

Conditions appear to be worsening and the sell-off could accelerate on February 3 when China’s Shanghai Exchange reopens after the extended Lunar New Year holiday. The Shanghai Index could open 5-10% lower, sending shockwaves around the globe.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. A trade through 3233.00 will change the main trend to down. A move through 3337.50 will signal a resumption of the uptrend.

The minor trend is down. This is generating the downside momentum. A trade through 3292.75 will change the minor trend to up.

The short-term range is 3337.50 to 3233.00. Its retracement zone at 3285.00 to 3297.25 is resistance. This zone stopped the buying on Wednesday.

The intermediate range is 3181.00 to 3337.50. Its retracement zone at 3259.25 to 3240.75 is support. The lower level of this zone stopped the selling earlier today.

The main range is 3071.00 to 3337.50. If the main trend changes to down then look for the selling to possibly extend into its retracement zone at 3204.25 to 3172.75.

Short-Term Outlook

The key area to watch into the close is 3259.25 to 3257.00.

Prices could strengthen into the close over 3259.25. Potential upside targets include 3285.00 and 3289.50. Overcoming 3289.25 will indicate the buying is getting stronger with the next target a Fibonacci level at 3297.25.

If 3257.00 fails as support then look for the selling to possibly extend into the support cluster at 3241.00 to 3240.75. This area stopped the selling on Thursday.

If 3240.75 fails then look for the selling to possibly extend into the main bottom at 3233.00. Taking this out will change the main trend to down with the next target angle coming in at 3227.00.

Look for an acceleration to the downside if sellers take out 3227.00.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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