E-mini S&P 500 Index (ES) Futures Technical Analysis – August 30, 2017 Forecast

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The initial support is coming from diminishing concerns surrounding North Korea. The market is getting an additional boost from better than expected ADP National Employment data and a stronger-than-expected second estimate for gross domestic product.

Later today, President Trump is expected to announce his tax reform plan.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2454.75 will change the main trend to up according to the daily swing chart. The next upside target is the August 16 main top at 2474.00. This is followed by the contract high at 2488.50.

A move through 2454.75 will also make 2421.00 a new secondary higher main bottom. This is followed by additional support at 2415.75.

The major support zone is 2415.00 to 2397.75.

The short-term range is 2415.75 to 2454.75. Its retracement zone at 2435.25 to 2430.50 is the primary downside target. If the trend is getting ready to turn higher, then this zone has to hold as support.

The main range is 2488.50 to 2415.75. Its retracement zone at 2452.25 to 2460.75 is the primary upside target. This zone stopped the rally on August 23 at 2454.75 and again earlier today.

Forecast

Based on the current price at 2443.75 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the 50% level at 2452.25.

A sustained move under 2452.25 will indicate the presence of sellers. This could generate enough downside momentum to challenge the retracement zone at 2435.25 to 2430.50.

Taking out 2430.50 could trigger another sharp break into 2421.00, 2415.75 and 2415.00.

A sustained move over 2452.25 will signal the presence of buyers. This is followed closely by the main top at 2454.75. This is the trigger point for a surge into 2460.75.

Look for an acceleration to the upside over 2460.75 with 2474.00 the next potential target.