E-mini S&P 500 Index (ES) Futures Technical Analysis – August 22, 2017 Forecast

September E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. The market is getting a boost from defense stocks which are rallying in reaction to President Trump’s speech on the Afghanistan War. Volume remains on the thin side so some of the moves today may be exaggerated.

Technical Analysis

The main trend is down according to the daily swing chart, however, the index is getting a boost after a successful test of a major 50% zone on Monday. Today’s price action makes 2415.75 a new minor bottom. The main trend changes to up on a move through 2474.00.

The main retracement zone support is 2415.00 to 2397.75.

The new short-term range is 2474.00 to 2415.75. Its retracement zone at 2445.00 to 2451.75 is the primary upside target. Since the main trend is down, we could see sellers re-emerge on a test of this zone.

Another short-term range is 2488.50 to 2415.75. Its retracement zone is 2452.25 to 2460.75.

Forecast

The first target zone is 2445.00 to 2451.75. The second is 2452.25 to 2460.75. The two combine to make the key price target 2451.75 to 2452.25.

Bearish traders are going to try to defend the trend and re-short the index on a test of the retracement zones. They are going to try to produce a secondary lower top.

Bullish traders are going to try to take out the retracements zone in an effort to shift momentum to the upside.