E-mini S&P 500 Index (ES) Futures Technical Analysis – Headed into 2876.75 to 2753.75 Retracement Zone

March E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Given the acceleration in the spread of the coronavirus, it’s hard to come up with a scenario that would encourage buying ahead of the weekend, so we’re looking for a weak tone throughout the session.

At 13:16 GMT, March E-mini S&P 500 Index futures are trading 2919.75, down 95.75 or -3.18%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2353.25 will signal a resumption of the downtrend. This will also make 3137.00 a new main top. The main trend will change to up on a trade through the main top.

The short-term range is 3397.50 to 2853.25. Its retracement zone at 3125.50 to 3189.75 is strong resistance.

The minor range is 2853.25 to 3137.00. Trading on the weak side of its retracement zone at 2961.75 to 2995.25 has turned the zone into new resistance.

The major support and next downside target zone is 2876.75 to 2753.75. This zone stopped the selling last week.

Daily Technical Analysis

Based on the early price action and the current price at 2919.75, look for the downtrend to continue as long as the index remains below 2961.75 to 2995.25. Investor sentiment could shift to the upside on a sustained move over 2995.25.

The major resistance angle comes in at 3013.25. This angle has been controlling the direction of the index since the major top from February 20 at 3397.50. Overtaking this angle will indicate the buying is getting stronger. This could trigger a strong short-covering rally.