E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 3365.50 Sets the Tone Today

March E-mini S&P 500 Index futures are trading lower shortly before the cash market opening on Thursday, but a little above its low for the session. Earlier in the session, the index hit a record high, but then plunged as traders shed risky assets in response to bearish news about the spreading coronavirus.

At 13:51 GMT, March E-mini S&P 500 Index futures are trading 3364.75, down 15.75 or -0.47%.

The index is currently in a position to post a daily closing price reversal top, but it’s going to take some work by sellers to turn this market lower since buyers have gotten used to buying the dips. We’re looking for a volatile, two-sided trade.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out yesterday’s high. A trade through 3382.50 will signal a resumption of the uptrend. A move through 3303.50 will change the main trend to down.

The short-term range is 3303.50 to 3382.50. Its retracement zone at 3343.00 to 3333.75 is the first downside target zone. Look for buyers on the first test of this zone.

The main range is 3212.75 to 3382.50. If the trend changes to down then its retracement zone at 3297.50 to 3277.50 will become the next downside target. This is also a value area so look for buyers to show up on a test of this area too.

Daily Technical Forecast

During the pre-market session, the market found support following a test of a pair of uptrending Gann angles at 3356.75 and 3351.50.

The intraday range is wide, coming in at 3382.50 to 3348.50. Its mid-point at 3365.50 should determine the direction of the index today.

Bullish Scenario

Overcoming and sustaining a rally over 3365.50 will indicate the presence of buyers. If this creates enough upside momentum then look for a retest of 3382.50. Taking out this level could trigger a surge to the upside.

Bearish Scenario

A sustained move under 3365.50 will signal the presence of sellers. Look for a retest of the uptrending Gann angles at 3356.75 and 3351.50. Look for buyers on the first test of these angles.

If 3351.50 fails as support then look for the selling to possibly extend into the short-term retracement zone at 3343.00 to 3333.75, followed by an uptrending Gann angle at 3327.50.

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.