March E-mini S&P 500 Index futures are trading sharply lower late Friday after reversing earlier gains. The catalyst behind the selling pressure is fear and uncertainty over the spreading Chinese coronavirus after the Centers for Disease Control and Prevention (CDC) reported a second case in the U.S. U.S. Senator John Barrasso later said the CDC told lawmakers they are about to confirm a third case of the Wuhan virus in the U.S.
At 19:32 GMT, March E-mini S&P 500 Index futures are at 3286.25, down 39.75 or -1.18%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is trending to the downside. The market is also in a position to post a potentially bearish weekly closing price reversal top.
A trade through 3337.50 will signal a resumption of the uptrend. The main trend will change to down on a move through 3181.00.
The minor trend is down. It turned down earlier today when sellers took out the last minor bottom at 3301.25. This move shifted momentum to the downside.
The short-term range is 3181.00 to 3337.50. Its retracement zone at 3259.25 to 3240.75 is the next potential downside target. Since the main trend is up, buyers could come in on a test of this area.
The main range is 3071.00 to 3337.50. Its retracement zone at 3204.25 to 3172.75 is the second potential downside target.
Daily Technical Forecast
With momentum to the downside, the first target is an uptrending Gann angle at 3269.00. This is followed by the short-term 50% level at 3259.25. If this fails to hold then look for the selling to possibly extend into the short-term Fibonacci level at 3240.75 or the uptrending Gann angle at 3225.00.
On the upside, the nearest resistance is a downtrending Gann angle at 3325.50. Overtaking this angle could lead to a test of the next downtrending Gann angle at 3321.50.
This article was originally posted on FX Empire
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