E-mini S&P 500 Index (ES) Futures Technical Analysis – July 10, 2017 Forecast

September E-mini S&P 500 Index futures are trading slightly better shortly before the cash market opening, but the market is coming down from an earlier high at 2429.25.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2445.00 will indicate the buying is getting stronger. A move through 2451.50 will change the main trend to up. A move through 2402.25 will signal a resumption of the downtrend.

The short-term range is 2451.50 to 2402.25. Its retracement zone is 2427.00 to 2432.75. This zone has stopped the index the last six days. Clearly this is where the sellers are.

The main range is 2341.75 to 2451.50. Its retracement zone at 2396.50 to 2383.50 is the primary downside target.

Forecast

Based on the current price at 2423.25 and the earlier price action, the direction of the index today is going to be determined by trader reaction to the 50% level at 2427.00.

A sustained move under 2427.00 will indicate the presence of sellers. The next downside targets are 2402.25 and 2396.50, but we’re going to need some news and better-than-average selling volume to get down to this area.

A sustained move over 2427.00 will signal the presence of buyers. This could lead to a fast rally into the Fib level at 2432.75. This level is the trigger point for an acceleration to the upside with potential targets at 2445.00 and 2451.50.

If volume is average today then look for a choppy, two-sided trade.