E-mini S&P 500 Index (ES) Futures Technical Analysis – August 3, 2015 Forecast

September E-mini S&P 500 Index futures finished lower on Friday after buyers couldn’t hold on to earlier gains. The selling started when the market tested a downtrending angle. The subsequent intraday break has the appearance of a secondary lower top, but this won’t be confirmed until 2095.25 is taken out.

The main trend is up according to the daily swing chart. The main range is 2126.25 to 2056.50. Its retracement zone is 2099.50 to 2091.25. Trader reaction to this zone will set the tone of the market today.

Holding the Fibonacci level at 2099.50 will signal the presence of buyers. The first upside target is a downtrending angle at 2106.25. This angle stopped the rally on Friday. The daily chart opens up to the upside over 2106.25 with the next targets coming in at 2116.25 and 2121.25. The latter is the last potential resistance before the 2126.25 main top.

A failure to hold 2099.50 will signal the presence of sellers. The first downside target is a steep uptrending angle at 2096.50. This is followed by the 50% level at 2091.25.

The daily chart will open up to the downside if the downtrending angle at 2086.25 is taken out with conviction. The next targets under this price are 2076.50 and 2066.50. The latter is the last angle before the 2056.50 main bottom.

Based on the close at 2098.50, the direction of the market today will likely be determined by trader reaction to 2099.50.