E-mini S&P 500 Index (ES) Futures Technical Analysis – 2472.50 Gann Angle Controlling This Week’s Direction

After shrugging off another geopolitical event early Monday, September E-mini S&P 500 Index futures are sitting just under its all-time high. Other than the tensions caused by North Korea, investors don’t seem to be worried about too much. This is probably why the volatility index has returned to near historically low levels.

Helping to support the market are slow and steady economic growth and low inflation. The possibility the Fed won’t raise rates until mid-2018 is also seen as a bullish factor.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. Momentum has also shifted back to the upside. A trade through 2488.50 will signal a resumption of the uptrend. A move through 2415.75 will shift momentum back to the downside.

The short-term range is 2488.50 to 2415.75. Its retracement zone at 2460.75 to 2452.00 is support.

The main range is 2314.75 to 2488.50. Its retracement zone is 2401.25 to 2381.00. This zone is a major support area on the weekly chart.

Forecast

Based on Friday’s close at 2474.25, the direction of the index this week is likely to be determined by trader reaction to the short-term downtrending angle at 2472.50.

A sustained move over 2472.50 will indicate the presence of buyers. This could drive the index back into the next downtrending angle at 2480.50. This is the last potential resistance angle before the 2488.50 main top.

Taking out 2488.50 will signal a resumption of the uptrend. This could trigger an acceleration into an uptrending angle at 2498.75. Overtaking this angle will put the index in an extremely bullish position.

A sustained move under 2472.50 will signal the presence of sellers. This could lead to a labored break into potential support at 2460.75, 2456.50 and 2452.00.

The weekly chart opens up to the downside under 2452.00 with potential downside targets at 2415.75, 2406.75 and 2401.25.

Watch the price action and read the order flow at 2472.50 all week.