E-mini S&P 500 Index (ES) Futures Technical Analysis – August 26, 2015 Forecast

September E-mini S&P 500 Index futures are trading slightly better shortly before the cash market opening. The index appears to be consolidating after Monday’s steep sell-off.

On the downside, the nearest support is a long-term uptrending angle at 1869.00. This is followed by the week’s low at 1831.00 and the contract low at 1815.00. The index is vulnerable under this level with 1775.00 the next potential downside target.

The first key upside target is a steep downtrending angle at 1911.75. This angle is a potential trigger point for an upside breakout. The first two levels to overcome are another uptrending angle at 1924.00 and a major Fibonacci level at 1934.00.

The short-term range is 2103.75 to 1831.00. Taking out 1934.00 will likely trigger a rally into 50% of this range at 1967.50. This is followed closely by a major 50% level at 1970.75. The combination of the two 50% levels at 1967.50 and 1970.75 is the best upside target today.

Overcoming 1970.75 and sustaining the move will put the index in a strong position with the next target a minor Fib level at 1999.50 and a downtrending angle at 2007.75.

Based on the current price at 1911.50, the direction of the regular session will likely be determined by trader reaction to the steep downtrending angle at 1911.75. Watch the price action and read the order flow at this price. This will tell us whether the bulls or the bears are in control.