E-mini S&P 500 Index (ES) Futures Technical Analysis – August 2, 2018 Forecast

September E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Concerns over an escalating trade war with China and rising interest rates are encouraging investors to book profits and pare positions.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down earlier today when sellers took out the main bottom at 2792.50. The trend will change to up on a move through 2849.50.

The minor trend is also down. It turned lower on the trade through 2798.25. It was reaffirmed on the move through 2792.50, setting up a potential test of the next minor bottoms at 2789.75 and 2765.75.

A trade through 2827.75 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 2693.25 to 2849.50. Its retracement zone at 2771.25 to 2755.25 is the primary downside target. We could see a technical bounce on the first test of this zone. If it fails then look for an acceleration to the downside.

Daily Swing Chart Technical Forecast

Based on the early trade, today’s price action will be all about momentum. If the downside momentum continues through 2792.50 then look for a spike into the 50% level at 2771.25. Watch for a technical bounce. If it fails then look for the selling to extend into the Fibonacci level at 2755.25. Once again look for a technical bounce on the first test.

The daily chart indicates that if 2755.25 is taken out with rising selling volume, we could see an acceleration to the downside with the next major target 2713.75.

Overcoming and holding above the former main bottom at 2792.50 will indicate the selling is getting weaker. This could even fuel an intraday short-covering rally. Short-sellers shouldn’t worry about the upside unless buyers take out 2827.75.

Looking at the early price action, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the main bottom at 2792.50. This price could act like a pivot today.