Yahoo Finance E-mini S&P 500 Index (ES) Futures Technical Analysis – Weakens Under 3285.00, Strengthens Over 3297.25
March E-mini S&P 500 Index futures are trading a little higher shortly after the cash market opening as traders continue to monitor the economic impact of the corona virus on China’s economy, while awaiting the latest decisions on interest rate and monetary policy from the U.S. Federal Reserve.
Stocks are being led higher by Apple which reported better-than-expected earnings after the close on Tuesday. Earlier today, McDonald’s posted better-than-expected quarterly results as well as ADP and General Electric.
At 14:57 GMT, March E-mini S&P 500 Index futures are trading 3278.75, up 0.50 or +0.01%.
The Federal Reserve is widely expected to leave its benchmark interest rate unchanged when it releases its monetary policy statement at 19:00 GMT. Fed Chair Jerome Powell will hold a press conference at 19:30 GMT.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 3337.50 will signal a resumption of the uptrend. The main trend will change to down on a move through 3233.00.
The short-term range is 3337.50 to 3233.00. Its retracement zone is 3285.00 to 3297.25. Trader reaction to this zone will determine the direction of the index today. Aggressive counter-trend traders are likely to come in on a test of this area. They’ll be trying to form a secondary lower top.
The intermediate range is 3181.00 to 3337.50. Its retracement zone at 3259.25 to 3240.75 is potential support. It helped stopped the selling on Monday.
The main range is 3071.00 to 3337.50. If the main trend changes to down then its retracement zone at 3204.25 to 3172.75 will become the primary downside target.
Daily Technical Forecast
Based on the early price action and the current price at 3278.75, the direction of the March E-mini S&P 500 Index futures contract the rest of the session on Wednesday is likely to be determined by trader reaction to the short-term 50% level at 3285.00.
Bearish Scenario
A sustained move under 3285.00 will indicate the presence of sellers. If this move creates enough downside momentum then look for a test of the uptrending Gann angle at 3265.00. This is followed by the short-term 50% level at 3259.25 and another uptrending Gann angle at 3249.00.
Short-term Fibonacci support is 3240.75, followed by another uptrending Gann angle at 3237.00 and the main bottom at 3233.00.
Bullish Scenario
A sustained move over 3285.00 will signal the presence of buyers. The first target is a resistance cluster at 3297.25 to 3297.50. Watch for sellers on the first test of this area.
Taking out 3297.50 could trigger an acceleration to the upside.
This article was originally posted on FX Empire
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