E-mini S&P 500 Index (ES) Futures Technical Analysis – August 14, 2017 Forecast

September E-mini S&P 500 Index futures are called higher based on the pre-market trade. The market is getting a boost from increased demand for higher risk assets.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 2488.50.

The main range is 2402.25 to 2488.50. Its retracement zone at 2445.25 to 2435.25 stopped the selling on Friday.

The short-term range is 2488.50 to 2430.25. Its retracement zone at 2459.50 to 2466.25 is the primary upside target. Aggressive countertrend traders are going to try to stop the rally inside the retracement zone. They are going to try to form a potentially bearish secondary lower top.

Bullish trend traders are going to try to take out the retracement zone in an effort to make 2430.25 a new higher bottom.

Forecast

Based on the current price at 2452.50 and the earlier price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the steep downtrending angle at 2456.50.

Overtaking 2456.50 will indicate the presence of buyers. This could lead to a test of a series of potential resistance levels at 2459.50, 2464.25 and 2466.25.

Overcoming 2466.25 may trigger an acceleration to the upside with 2472.50 the next target, followed by 2480.50.

A failure to overcome and sustain a rally over 2456.50 will indicate the presence of sellers. This could lead to a retest of the main 50% level at 2445.25. This is the trigger point for a possible acceleration into the Fibonacci level at 2435.25, followed closely by an uptrending angle at 2433.25.

Taking out last week’s low at 2430.25 could drive the market into the next uptrending angle at 2417.75.

Watch the price action and read the order flow at 2456.50. Trader reaction to this angle will set the tone for the day.