E-mini S&P 500 Index (ES) Futures Technical Analysis – August 9, 2017 Forecast

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Earlier today, the index confirmed yesterday’s closing price reversal top. This could lead to a minimum 2 to 3 day correction.

The main trend is up according to the daily swing chart, however, momentum shifted to the downside on Tuesday with the formation of the closing price reversal top. A trade through the previous low at 2457.00 will indicate that the downside momentum is increasing.

On the upside, a pair of 50% levels or pivots provide resistance at 2468.75 and 2473.75. Overtaking 2473.75 and sustaining the move will indicate that the buying is increasing.

The first major target is an uptrending angle at 2458.25. This forms a loose support cluster with the 2457.00 low. We could see a technical bounce on the first test of this area. If it fails then look for an acceleration to the downside.

The main range is 2402.25 to 2488.50. Its retracement zone at 2445.25 to 2435.25 is the primary downside target, followed by an uptrending angle at 2430.25. Since the trend is up, we could see more aggressive buying on a test of this zone.