E-mini S&P 500 Index (ES) Futures Technical Analysis – January 19, 2017 Forecast
March E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility.
Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is flat.
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The short-range is 2277.00 to 2248.50. Its 50% level or pivot is 2262.75. This pivot is controlling the direction of the market today.
The main range is 2228.00 to 2277.00. If there is a sell-off then its retracement zone at 2252.50 to 2246.75 will become the primary downside target.
Forecast
Based on the current price at 2264.00 and the early price action, the direction of the market today is likely to be determined by trader reaction to the pivot at 2262.75.
A sustained move over 2262.75 will signal the presence of buyers. This could generate enough upside momentum to challenge the nearest downtrending angle at 2269.00. This angle is resistance but also the trigger point for an acceleration into the next angle at 2273.00. This is the last potential resistance angle before the 2277.00 main top.
A sustained move under 2262.75 will indicate the presence of sellers. The first downside target and the trigger point for an acceleration to the downside is a downtrending angle at 2261.00.
The first target under 2261.00 is the low at 2257.25, followed by the major 50% level at 2252.50 and an uptrending angle at 2252.00.
Watch the price action and read the order flow at 2262.75 all session. Trader reaction to this level will tell us if the bulls or the bears are in control.