E-mini S&P 500 Index (ES) Futures Technical Analysis – August 18, 2017 Forecast

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

Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Thursday when the sellers took out the 2430.25 main bottom.

The retracement zone on the upside at 2435.25 to 2445.50 is resistance.

The retracement zone at 2415.00 to 2397.75 is the next downside target and could provide support. An uptrending angle passes through the zone at 2405.75, making it a valid downside target.

Forecast

Based on the current price at 2432.25, the direction of the index today is likely to be determined by trader reaction to the short-term Fib at 2435.25.

A sustained move over 2435.25 will indicate the presence of buyers. This could trigger a rally into the 50% level at 2445.50, followed by the downtrending angle at 2456.50.

A sustained move under 2435.25 will signal the presence of sellers. This could trigger a break through yesterday’s low at 2423.75. This could lead to a test of the major 50% level at 2415.00, followed by an uptrending angle at 2405.75 and a Fibonacci level at 2397.75.