March E-mini S&P 500 Index futures are trading lower at the mid-session as investors grew increasingly worried about the potential economic impact of China’s fast-spreading coronavirus. The index hit its low for the session as the New York Daily News reported New York’s first coronavirus case. CNBC could not confirm the report after the Daily News updated the report to show the case was not confirmed.
At 18:00 GMT, March E-mini S&P 500 Index futures are at 3234.50, down 55.25 or -1.68%.
Based on the way the virus is spreading, investors aren’t expecting any good news over the weekend. Instead, they are anticipating conditions to worsen and are selling stocks ahead of the weekend.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The trend turned down earlier today when sellers took out the swing bottom at 3233.00. A trade through 3297.50 will change the main trend to up. The next downside target is the January 8 main bottom at 3181.00.
The main range is 3071.00 to 3337.50. Its retracement zone at 3204.25 to 3172.75 is the next downside target. This zone is controlling the near-term direction of the index. Watch for a technical bounce on the first test of this zone.
The short-term range is 3181.00 to 3337.50. Its retracement zone is 3259.25 to 3240.75. Trading on the weak side of this zone indicates the selling is getting stronger. This zone is potential resistance.
Daily Technical Forecast
Based on the earlier price action and the current price at 3234.50, the direction of the March E-mini S&P 500 Index the rest of the session on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 3231.00.
A sustained move under 3231.00 will indicate the presence of sellers. This could trigger a break into the main 50% level at 3204.50. Watch for buyers on the first test.
If 3204.50 fails as support then look for the selling to extend into the main bottom at 3181.00, followed by the main Fibonacci level at 3172.75.
A sustained move over 3231.00 will signal the presence of buyers. This could lead to a labored rally with potential upside targets coming in at 3240.75, 3245.00 and 3259.25.
Overtaking 3259.25 could trigger a surge into the downtrending Gann angle at 3281.50. This is the last potential resistance angle before the 3297.50 main top.
This article was originally posted on FX Empire
More From FXEMPIRE:
- European Equities: A Week in Review – 31/01/20
- Natural Gas Price Forecast – Natural Gas Markets Continue To Look Sluggish
- AUD/USD Weekly Price Forecast – Australian Dollar Gets Hammered For The Week
- Gold Price Prediction – Prices Rise on Safe-haven Flows
- Crude Oil Price Forecast – Crude Oil Markets Testing Major Support
- US Stock Market Overview – Stocks Tumble on Coronavirus Fears