E-mini S&P 500 Index (ES) Futures Technical Analysis – August 10, 2017 Forecast

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The market is trading inside yesterday’s trading range, suggesting investor indecision and impending volatility.

The price action also suggests that investors are trying to determine whether risk is on, or risk is off.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of Monday’s closing price reversal top at 2488.50.

A trade through 2488.50 will negate the closing price reversal top and signal a resumption of the uptrend.

A trade through 2459.00 and 2457.00 will indicate the downside momentum is getting stronger.

The short-term range is 2488.50 to 2459.00. Its 50% level or pivot is 2473.75. This pivot is controlling the short-term direction of the market.

The main range is 2402.25 to 2488.50. Its retracement zone at 2445.25 to 2435.25 is the primary downside target.

Forecast

The early price action indicates the trigger point for a breakout to the upside is 2473.75. However, the buying volume must be strong enough to continue the move into 2488.50.

Taking out the long-term uptrending angle at 2460.25 will indicate the selling pressure is increasing. If this generates enough downside momentum, we could see a quick move into 2459.00 and 2457.00.

The low at 2457.00 is the trigger point for a possible acceleration to the downside with 2445.25 the next likely downside target. This is followed by a Fibonacci level at 2435.25 and another uptrending angle at 2431.25.