E-mini S&P 500 Index (ES) Futures Technical Analysis – August 21, 2017 Forecast

September E-mini S&P 500 Index futures are trading flat shortly before the cash market opening. There was no follow-through to the downside following last week’s steep sell-off. The inside move suggests investor indecision and impending volatility.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2419.50 will signal a resumption of the downtrend.

Today’s session begins with the index down nine sessions from the contract high. This puts it in the window of time for a possible closing price reversal bottom.

The primary downside target is the major retracement zone at 2415.00 to 2397.75.

The new short-term range is 2474.00 to 2419.50. Its retracement zone at 2447.75 to 2453.25 is the primary upside target.

Forecast

Since the index is being driven by momentum, the direction of the market today will be determined by trader reaction to Friday’s low at 2419.50.

Buyers may come in ahead of this level. This could trigger a short-covering rally.

Sellers may come in to drive the market through 2419.50.

We could also see a break through 2419.50 and a test of 2415.00 to 2397.75. This could trigger a reversal to the upside into the close.