E-mini S&P 500 Index (ES) Futures Technical Analysis – August 18, 2015 Forecast

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. During the pre-market session, the index spiked higher through the previous top at 2101.75. The move changed the main trend to up, however, the buying wasn’t stronger enough to continue the move.

Currently, the index is trading on the weak side of a major Fibonacci level at 2095.75. Trader reaction to this level should determine the direction for the day.

A sustained move over 2095.75 will signal the presence of buyers. The first upside target is downtrending angle at 2105.25. The next potential targets over this level are a main top at 2109.25 and a steep uptrending angle at 2110.50.

Crossing to the strong side of the angle at 2110.50 will put the market in an extremely bullish position. This could trigger a move into a downtrending angle at 2115.75. This is the last potential resistance angle before the 2126.25 main top.

 A sustained move under 2095.75 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with the 50% level at 2086.25 the next major target. This is followed by a pair of angles at 2084.25 and 2078.50.

The uptrending angle at 2078.50 is a potential support level, but it is also a trigger point for a steep sell-off. The next major target on this price is an angle at 2062.50.

Watch the price action and read the order flow at 2095.75. This will tell us whether the bulls or the bears are in control.