E-mini S&P 500 Index (ES) Futures Technical Analysis – August 28, 2017 Forecast

September S&P 500 Index futures are expected to open lower based on the pre-market trade. The index gapped lower on the opening early Tuesday as investors shed risky assets after North Korea launched a missile over Japan.

Technical Analysis

The main trend is down according to the daily swing chart. Today’s price action has made 2454.75 a new main top. A trade through this level will change the main trend to up. A move through 2415.75 will signal a resumption of the downtrend.

The major retracement zone target on the downside is 2415.00 to 2397.75. We could see value seekers show up on a test of this zone so don’t be surprised by a technical bounce.

The short-term range is 2415.75 to 2454.75. Its retracement zone at 2430.75 to 2435.25 is providing resistance today.

The intermediate range is 2488.50 to 2415.75. Its retracement zone is at 2452.25 to 2460.75. This zone stopped a rally last week at 2454.75.

Forecast

Based on the current price at 2432.00, the direction of the index today is likely to be determined by trader reaction to the short-term Fibonacci level at 2430.75.

A sustained move under 2430.75 will indicate the presence of sellers. This could trigger a further break into 2415.75 then 2415.75. This price is the trigger point for an acceleration into 2397.75.

Overcoming the short-term 50% level at 2435.25 will signal the return of buyers with potential targets at 2452.25 and 2454.75.

Basically, I’m bearish under 2430.50 and bullish over 2435.50.