E-mini S&P 500 Index (ES) Futures Technical Analysis – August 7, 2018 Forecast

September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. Increased demand for higher risk assets are helping to drive the price action. Investors seem to be ignoring concerns over the trade dispute between the US and China, and instead, are focusing on earnings.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. It turned up on Monday when buyers took out the previous main top at 2849.50. This puts the index on course for an eventual test of the January 29 top at 2889.00.

The new main bottom is 2791.00. A trade through this level will change the main trend to down.

The current short-term range is 2791.00 to 2858.50. Its retracement zone is support at 2824.75 to 2816.75. This zone will move higher if a new high is reached today.

Daily Swing Chart Technical Forecast

Today’s price action will be determined by momentum since there isn’t any resistance until 2889.00.

We’ve already had a higher-high, so the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to yesterday’s close at 2850.00.

A sustained move over 2850.00 will indicate the presence of buyers. The rest of the upside price action will be determined by the strength of the buying volume.

A sustained move under 2850.00 will signal the presence of sellers. This will indicate the selling is greater than the buying at current price levels. It will also put the index in a position to form a closing price reversal top. This could lead to the start of a 2 to 3 day correction.