E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – January 7, 2019 Forecast

March E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. The other major indexes are trading mixed. There was very little follow-through following Friday’s strong surge. This suggests the move may have been overdone, or buyers were taking profits. Today’s session begins with the index inside the window of time for a closing price reversal top. Therefore, we won’t be surprised if the index finishes lower today.

At 1438 GMT, March E-mini S&P 500 Index futures are trading 2530.00, down 1.30 or -0.05%.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Friday when buyers took out the last swing top at 2523.00. A new main bottom was formed at 2438.50. This is also a secondary higher bottom, which indicates new buyers may have come in last week.  A trade through this bottom will change the main trend to down.

The main range is 2690.50 to 2316.75. The index is currently testing its retracement zone at 2503.50 to 2547.75. Trader reaction to this zone will determine the near-term direction of the index.

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 is likely to be determined by trader reaction to the main Fibonacci level at 2547.75.

Bullish Scenario

Taking out 2547.75 will indicate the presence of buyers. The first target angle comes in at 2562.50. This is a potential trigger point for an acceleration to the upside. The daily chart indicates there is plenty of room to the upside with the next target angle coming in at 2626.50.

Bearish Scenario

A sustained move under 2547.50 will signal the presence of sellers. Crossing to the weak side of the uptrending Gann angle at 2540.75 will indicate the selling is getting stronger. This could trigger a break into the major 50% level at 2503.50.

Look for the selling to extend under 2503.50 with a pair of uptrending Gann angles at 2470.50 and 2454.50 the next likely targets.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.