E-mini S&P 500 Index (ES) Futures Technical Analysis – August 1, 2018 Forecast

September E-mini S&P 500 Index futures are expected to open flat based on the pre-market trade. The market seems to have absorbed the threat of increased tariffs on China and now investors await the Fed’s interest rate decision and monetary policy statement.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2849.50 will signal a resumption of the uptrend. A move through 2792.50 will change the main trend to down.

The minor trend is also up. A trade through 2798.25 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 2792.50 to 2849.50. Its 50% level or pivot at 2821.00 is controlling the direction of the index today.

The main range is 2693.25 to 2849.50. If the trend changes to down then its retracement zone at 2771.25 to 2753.00 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to 2821.00.

A sustained move over 2821.00 will indicate the presence of buyers. This could lead to a quick test of the downtrending Gann angle at 2829.50. We could see sellers show up on the first test of this angle, but it’s also the trigger point for an acceleration to the upside with the next target angle 2839.50. This is the last potential resistance angle before the 2849.50 main top.

A sustained move under 2821.00 will signal the presence of sellers. If this move creates enough downside momentum then look for a break into a pair of uptrending Gann angles at 2806.50 and 2799.50. The latter is the last potential support angle before the minor bottom at 2798.25 and the main bottom at 2792.50.

If the trend changes to down then look for the selling to extend into a long-term uptrending Gann angle at 2785.25. This is followed by the 50% level at 2771.25.