E-mini S&P 500 Index (ES) Futures Technical Analysis – January 6, 2015 Forecast

March E-mini S&P 500 Index futures begin today’s session trading inside a key retracement zone bounded by 2025.25 to 2010.00. An uptrending Gann angle from the 1961.50 bottom at 2013.50 passes through this zone, making it a valid target also.

Trader reaction to the zone will determine the trend of the market today. Overtaking the upper or 50% level at 2025.25 will be a strong indication that buyers are coming back into the market. If enough upside momentum is generated then look for a possible acceleration into the nearest downtrending angle at 2040.75.

Taking out the lower or Fibonacci level at 2010.00 could lead to a similar acceleration except to the downside. The daily chart opens up under this level with the nearest support at 1987.50.

Since the main trend is up, buyers are coming in inside the retracement zone for both value and in an effort to defend the market against a wash-out to the downside. It is possible that the buyers and sellers will neutralize themselves, creating a sideways trade, but this unlikely to last for the entire session.

Watch the price action and read the order flow inside 2025.25 to 2010.00 to determine who has the upper hand today, the bulls or the bears.