E-mini S&P 500 Index (ES) Futures Technical Analysis – August 31, 2017 Forecast

September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The index is currently straddling a key retracement level. Trader reaction to this level will set the tone for the session.

Technical Analysis

The main trend is up according to the daily swing chart. If the upside momentum from the move continues then the rally could extend into the next main top at 2474.00. This is a potential trigger point for an acceleration into the contract high at 2488.50.

A pullback under the previous top at 2454.75 will indicate the buying is getting weaker or the selling is getting stronger.

The main range is 2488.50 to 2415.75. Its retracement zone at 2452.00 to 2460.75 is currently being tested.

The short-term range is 2421.00 to 2465.00. If there is selling pressure then its retracement zone at 2443.00 to 2437.75 will become the first downside target.

Forecast

Based on the current price at 2461.25, and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the main Fibonacci level at 2460.75.

A sustained move over 2460.75 will indicate the presence of buyers. Overtaking the intraday high at 2465.00 will indicate the buying is getting stronger. If this generates enough upside momentum then look for a move into 2474.00. This is a potential trigger point for an acceleration into 2488.50.

A sustained move under 2460.75 will signal the presence of sellers. This could drive the market into the main 50% level at 2452.00.

This is a potential trigger point for an acceleration into the short-term retracement zone at 2443.00 to 2437.75. Since the main trend is up, buyers are expected to show up on a test of this zone. This are going to try to form a secondary higher bottom.