E-mini S&P 500 Index (ES) Futures Technical Analysis – August 2, 2017 Forecast

September E-mini S&P 500 Index futures are trading slightly higher during the pre-market session. The volume is light and the range is tight. Traders are waiting to react to earnings reports scheduled for later today. Weaker crude oil prices could also play a role in the direction of the index today.

Technical Analysis

The main trend is up according to the daily swing chart. The minor trend is down. The closing price reversal top from July 27 has slowed the upside momentum.

A trade through 2480.50 will negate the closing price reversal top and signal a resumption of the uptrend.

A trade through 2457.00 will confirm the closing price reversal top. This could lead to a 2 to 3 day correction.

The short-term range is 2480.50 to 2457.00. Its 50% level or pivot is 2468.75. This price is controlling the short-term direction of the market. A sustained move over the pivot will give the index an upside bias. A sustained move under this pivot will indicate that selling pressure is increasing.

The main range is 2402.25 to 2480.50. If sellers take out 2457.00 with conviction, we could see a break into the main retracement zone at 2441.25 to 2432.00.

Forecast

Based on the current price at 2474.25 and the earlier price action, the direction of the index today will be determined by trader reaction to the pivot at 2468.75.

A sustained move over 2468.75 will give the index an upside bias. There is room to the upside with 2480.50 the first target, followed by an uptrending Gann angle at 2494.25. Given the recent volatility, we’re going to need some news to trigger a move into these levels.

A sustained move under 2468.75 will shift the bias to the downside. If the selling is strong enough, we could see a plunge into 2457.00. This is followed by an uptrending angle at 2448.25.