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E-mini S&P 500 Index (ES) Futures Technical Analysis – August 31, 2016 Forecast

By:
James Hyerczyk
Published: Aug 31, 2016, 12:52 UTC

December E-mini S&P 500 Index futures are called flat-to-lower shortly before the cash market opening. Traders had almost no reaction to the ADP’s

E-mini S&P 500 Index (ES) Futures Technical Analysis – August 31, 2016 Forecast

December E-mini S&P 500 Index futures are called flat-to-lower shortly before the cash market opening. Traders had almost no reaction to the ADP’s private sector payroll report that came in as expected. The private sector jobs report showed that companies added 177,000 positions for the month, just above expectations of 175,000.

Investors will also get the opportunity to react to a Chicago PMI Index at 0145 GMT and a pending home sales report at 0200 GMT. Most of the major market players, however, are focusing on Friday’s U.S. Non-Farm Payrolls report that is expected to show the economy added 180,000 jobs in August.

E-mini S&P 500 Index Futures Contract
Daily September E-mini S&P 500 Index

Technically, the main trend is down according to the daily swing chart. A trade through 2191.50 will turn the main trend to up. A move through 2157.50 will reaffirm the downtrend.

The main range is 2141.50 to 2191.50. Its retracement zone at 2166.50 to 2160.50 is the primary downside target.

The short-term range is 2191.50 to 2157.50. Its retracement zone at 2174.50 to 2178.50 has been straddled all week, indicating investor indecision.

Based on the current price at 2172.75, the direction of the index the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 2174.50.

A sustained move under 2174.50 will signal the presence of sellers with the next major objective the main 50% level at 2166.50. This is followed by an uptrending angle at 2162.50 and the Fibonacci level at 2160.50.

A sustained move over 2174.50 will indicate the presence of buyers. The first objective is a short-term Fib level at 2178.50 and a downtrending angle at 2179.50. This is the trigger point for an acceleration into the next downtrending angle at 2185.50.

Watch the price action and read the order flow at 2174.50 today. Trader reaction to this 50% level will set the tone for the day.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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