E-mini S&P 500 Index (ES) Futures Technical Analysis – August 24, 2015 Forecast

September E-mini S&P 500 Index futures are expected to open sharply lower based on the pre-market trade. The index is also trading on the weak side of the contract’s retracement zone at 1934.00 to 1970.75.

The current price at 1923.50 has the index straddling a long-term uptrending angle at 1923.00. Trader reaction to this angle is likely to determine the direction of the market today.

A sustained move over 1923.00 will signal the presence of buyers. Overcoming the Fibonacci level at 1934.00 will indicate the buying or short-covering is getting stronger. The next target above this is the 50% level at 1970.75.

The daily chart opens up over 1970.75 with a steep downtrending angle at 1975.75 the next target. This price is also a trigger point for a move into 2039.75.

If the angle at 1923.00 is taken out with conviction then there could be another washout to the downside with the next target an uptrending angle at 1869.00. This is the last major support angle before the October 15, 2014 main bottom at 1815.00.

Watch the price action and read the order flow if you can at 1923.00. This will tell us whether the sellers are increasing control, or if the buyers are finally showing up because of value.