E-mini S&P 500 Index (ES) Futures Technical Analysis – July 11, 2018 Forecast

September E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The index is under pressure because of concerns over an escalation of the trade dispute between the United States and China amid the announcement of new tariffs on Beijing by the Trump administration.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the closing price reversal top on Tuesday and the subsequent confirmation early Wednesday. The chart pattern doesn’t mean the trend is changing to down, but it could lead to the start of a 2 to 3 day correction.

A trade through 2797.75 will negate the chart pattern and signal a resumption of the uptrend. This could trigger an eventual rally into the March 13 top at 2814.00.

The new short-term range is 2693.25 to 2797.75. If the selling pressure continues, we could see a move into 2745.50 to 2733.00 by the end of the week. Since the main trend is up, buyers could show up on a test of this zone.

Daily Technical Forecast

Based on the current price action, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to the long-term downtrending Gann angle at 2775.75.

A sustained move over 2775.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of the minor top at 2797.75. Overtaking this level will shift momentum back to the upside. This could fuel a rally into the next main top at 2814.00.

A sustained move under 2775.75 will signal the presence of sellers. This could trigger a sharp break into the steep uptrending Gann angle at 2757.25. Watch for a technical bounce on the first test of this angle. If it fails then sellers will have a clean shot at 2745.50 within 2 to 3 trading sessions.