E-mini S&P 500 Index (ES) Futures Technical Analysis – August 17, 2017 Forecast

September E-mini S&P 500 Index futures are trading lower early Thursday, setting up the market for a lower cash market opening.

Technical Analysis

The main trend is up according to the daily swing chart. However, the market may be in the early stages of forming a potentially bearish secondary lower top.

A trade through 2474.00 will signal a resumption of the uptrend with the 2488.50 main top the next upside target.

The index is currently trading inside a retracement zone at 2486.25 to 2459.25.

The short-term retracement zone is 2430.25 to 2474.00. Its retracement zone at 2452.00 to 2447.00 is the primary downside target.

Forecast

The index is currently trading at 2461.50 and straddling Gann angles at 2462.25 and 2460.50.

A sustained move over 2460.50 will indicate the presence of buyers. This could trigger a fast move into 2466.25. Overtaking this Fibonacci level will indicate the buying is getting stronger. This could fuel a rally into a resistance cluster at 2474.00 to 2474.50. Look for a breakout to the upside if 2474.50 is taken out with conviction.

Crossing to the weak side of the angle at 2460.50 will indicate the selling is getting stronger with 2459.25 the next target. This is also a trigger point for an acceleration to the downside with the next major target coming in at 2452.00 to 2447.00.

Basically, look for a bullish tone on a sustained move over 2462.25 and a bearish tone on a sustained move under 2460.50.