E-mini S&P 500 Index (ES) Futures Technical Analysis – March 9, 2017 Forecast

June E-mini S&P 500 Index futures are trading flat to slightly lower shortly before the cash market opening. Traders are rolling over from the March contract into the June futures contract and also positioning themselves ahead of Friday’s U.S. Non-Farm Payrolls report.

Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 2397.25 will signal a resumption of the uptrend.

The main range is 2257.25 to 2397.25. Its retracement zone at 2327.25 to 2310.75 is the primary downside target. Since the main trend is up, we could see a technical bounce on the first test of this zone.

Forecast

Based on the current price at 2360.00, the direction of the index is likely to be determined by trader reaction to the uptrending angle at 2361.25.

A sustained move over 2361.25 will indicate the presence of buyers. This could generate enough upside momentum to challenge the downtrending angle at 2373.25. We could see sellers on the first test of this angle.

Overtaking this angle could trigger an acceleration into the next downtrending angle at 2385.25.

A failure to overcome the angle at 2361.25 will signal the presence of sellers. The next downside target is the steep downtrending angle at 2349.25.

Crossing to the weak side of the steep angle at 2349.25 will put the index in a bearish position with the next target coming in at 2327.25.

Watch the price action and read the order flow at 2361.25 all session. Trader reaction to this angle will tell us if the selling pressure is increasing or if buyers are returning.