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

September E-mini S&P 500 Index futures are trading slightly better shortly before the cash market opening. It looks as if investors are shrugging off the potential damage to the economy due to Hurricane Harvey and are instead speculating on the announcement of President Trump’s long awaited tax reform plan.

Technical Analysis

The main trend is down according to the daily swing chart, however, momentum appears to be in a position to shift to the upside. A trade through 2454.75 will indicate the buying is getting stronger. A move through 2474.00 will change the main trend to up.

A trade through 2434.50 will be a sign of weakness. A move through 2415.75 will reaffirm the downtrend.

The index is also being manipulated by four retracement zones.

On the downside, the minor support zone is 2435.25 to 2430.50. The major support zone is 2415.00 to 2397.75.

On the upside, the first resistance area is 2445.00 to 2451.75. This is followed by 2452.25 to 2460.75.

Forecast

Based on the current price at 2446.00, and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the 50% level at 2445.00.

A sustained move over 2445.00 will indicate the presence of buyers. This could drive the market into the first resistance cluster at 2451.75 to 2452.00. Overcoming this area is likely to trigger a further rally into the next resistance cluster at 2460.50 to 2460.75.

The trigger point for an acceleration to the upside is 2460.75.

The inability to overcome 2445.00 will signal the presence of sellers. This could trigger a labored break with potential targets at 2435.75 to 2435.25. This is followed by 2430.50 and 2425.75.

The angle at 2425.75 is the trigger point for an acceleration to the downside.