E-mini S&P 500 Index (ES) Futures Technical Analysis – July 12, 2019 Forecast

September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. Earlier in the session, the benchmark index touched a new all-time high. Buyers continue to be driven by the prospect of an interest rate cut by the Federal Reserve when it meets on July 30-31.

At 12:28 GMT, September E-mini S&P 500 Index futures are trading 3011.25, up 7.25 or +0.25%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out Wednesday’s high at 3007.50.

The trend changes to down on a trade through 2963.50. This is not likely today, but the market could form a closing price reversal top if the buying drives up, or the selling pressure increases.

Daily Technical Forecast

Based on the early price action and the current price at 3011.25, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 3011.50.

Bullish Scenario

A sustained move over 3011.50 will indicate the presence of buyers. If this move creates enough upside momentum then buyers may take a run at the uptrending Gann angle target at 3031.50. Overtaking this angle will put the index in an extremely bullish position.

Bearish Scenario

A sustained move under 3011.50 will signal the presence of sellers. The first target is an uptrending Gann angle at 3002.50. Crossing to the weak side of this angle will indicate the selling pressure is getting stronger. This could trigger a break into the uptrending Gann angle at 2987.50.

Look for a technical bounce on the first test of 2987.50. If it fails then look for the selling to extend into the next uptrending Gann angle at 2975.50.

Overview

A close below 3004.00 will form a closing price reversal top. If confirmed on Monday, this could trigger the start of a 2 to 3 day correction.