E-mini S&P 500 Index (ES) Futures Technical Analysis – July 13, 2018 Forecast

September E-mini S&P 500 Index futures are trading nearly flat as we approach the opening. We’re still in the 7 to 10 day window of time for a closing price reversal top. Earlier in the session, the market made a higher-high. If we get a lower close, close below the opening and a close below the mid-point of the trading session, we could see the start of a 2 to 3 day correction. This move will not mean a change in trend is imminent, but it will indicate the selling is greater than the buying at current price levels.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Today’s intraday high is 2807.25. A trade through this level will signal a resumption of the uptrend. This could lead to a test of the March 13 top at 2814.

Breaking back below yesterday’s close at 2798.50 will be a sign of selling pressure. Crossing below the previous minor top at 2797.75 will indicate the selling pressure is getting a little stronger.

The current minor range is 2765.75 to 2807.25. Its 50% level at 2786.50 is another downside target. This is a “live” target, meaning it will move up if the index makes a new high for the session.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to yesterday’s close at 2798.50.

A sustained move over 2798.50 will indicate the presence of buyers. If this generates enough upside momentum then look for buyers to re-test 2807.25. This is followed by 2814.00. Overcoming this level with conviction could trigger an acceleration into the major downtrending Gann angle at 2831.50.

A sustained move under 2798.50 will signal the presence of sellers. This could lead to a test of the short-term pivot at 2786.50. Look for prices to accelerate to the downside if this price fails.

The major area to watch on the downside today is the crossing of two Gann angles at 2773.25. Crossing to the weak side of this area will indicate the selling is getting stronger. Taking out 2765.75 will change the minor trend to down and shift momentum to the downside.

Keep an eye on 2798.50 all day and especially at the close. Settling below this level will form a closing price reversal top.