E-mini S&P 500 Index (ES) Futures Technical Analysis – July 17, 2017 Forecast

September E-mini S&P 500 Index futures are trading slightly higher and inside Friday’s range. This tends to indicate investor indecision and impending volatility.

The index went vertical on Friday after breaking out of an 18 day range. There is no resistance other than Friday’s high at 2461.25.

If the height of the market is determined by the length of the base then we could we looking at a rally to 2500.25 over the near-term.

Without any resistance, the best signal for a top will be an intraday or daily closing price reversal top. This chart pattern will signal that the selling is greater than the buying at current price levels.

On the downside, the first potential support is the former top at 2451.50. We’ll call this support because old tops tend to become new bottoms when the market is in a strong uptrend.

If 2451.50 fails as support then sellers could drive the market into the next potential support level at 2445.00.

If a short-term range develops between 2402.25 and 2461.25 then its retracement zone at 2431.75 to 2424.75 would become the primary downside target.

Based on this assessment, the direction of the index today is likely to be determined by trader reaction to 2461.25. Buyers could take this price out with conviction, triggering a breakout to the upside with no resistance.

Sellers could come in to prevent the market from breaking out to the upside.

Finally, buyers could take out 2461.25 then sellers could stop the move and drive it back under Friday’s close at 2456.00. A close under this level will produce a potentially bearish closing price reversal top.