E-mini S&P 500 Index (ES) Futures Technical Analysis – August 25, 2017 Forecast

September E-mini S&P 500 Index futures are trading higher shortly before the opening. The market is still ping-ponging between retracement levels. Traders are waiting for direction and hopefully they’ll get it early in the session from the U.S. Durable Goods report or later in the day after Janet Yellen’s and Mario Draghi’s speeches.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2474.00 will turn the main trend to up. A move through 2415.75 will signal a resumption of the downtrend.

A trade through 2454.75 will change the minor trend to up. A move through 2434.50 will shift momentum back to the downside.

The main retracement zone is 2452.25 to 2460.75. This zone is currently acting like resistance.

The intermediate retracement zone is 2444.75 to 2452.25. The market is currently straddling this area.

The short-term retracement zone is 2435.25 to 2430.50. This zone is support.

Forecast

Based on the current price at 2447.75, the direction of the index today is likely to be determined by trader reaction to the 50% level at 2444.75.

A sustained move over 2444.75 will signal the presence of buyers. This could lead to a test of the main 50% level at 2452.25 and the main Fibonacci level at 2460.75.

The trigger point for a rally into the main top at 2474.00 is the Fib level at 2460.75.

A sustained move under 2444.75 will indicate the presence of sellers. This could trigger a quick break into the short-term retracement zone at 2435.25 to 2430.50.

Taking out 2430.50 could trigger an acceleration into 2415.75.

We could get a two-sided reaction from Yellen and Draghi because volume is below average. Try to keep the focus on 2444.75.