E-mini S&P 500 Index (ES) Futures Technical Analysis – March 13, 2019 Forecast
March E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The market is on its high for the session, suggesting investors aren’t too concerned about the outcome of the Brexit vote in the U.K.
Investors are also reacting to the relatively tame report on producer prices. The Labor Department PPI report showed U.S. wholesale prices barely rose last month after falling for three straight months, a sign there is little inflation to worry about in the economy. It also likely means the Fed will keep interest rates unchanged at its next meeting in March. Lower rates tend to be supportive for stock prices.
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At 13:26 GMT, March E-mini S&P 500 Index futures are trading 2801.75, up 9.75 or +0.35%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. Today’s strong move has put the index in a position to challenge the next main top at 2819.75. Taking out this level will change the main trend to up.
The short-term range is 2819.75 to 2722.00. Its retracement zone at 2782.50 to 2770.75 is support. This zone is controlling the near-term direction of the index.
Daily Technical Forecast
Based on the early price action, intraday momentum is trending higher. If this continues then look for a test of the downtrending Gann angle at 2805.75. Look for a technical bounce on the first test of this angle.
Overtaking 2805.75 could extend the rally into a pair of Gann angles at 2812.75 and 2816.25. The latter is the last potential resistance angle before the 2819.75 main top.
If buyers fail to take out 2805.75 then look for the return of sellers. This could drive the index into a downtrending Gann angle at 2791.75.
If 2791.25 fails as support then look for a test of the Fibonacci level at 2782.50. If this fails then look for the selling to possibly extend into a support cluster at 2770.75.