E-mini S&P 500 Index (ES) Futures Technical Analysis – July 17, 2018 Forecast

September E-mini S&P 500 Index futures are called lower shortly before the cash market opening. The index is being pressured by weakness in the technology and energy sectors as well as general nervousness ahead of the congressional testimony of Fed Chair Jerome Powell.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted down following yesterday’s closing price reversal top and subsequent confirmation earlier today.

A trade through 2809.00 will negate the reversal top and signal a resumption of the uptrend.

The minor trend is up. A trade through 2765.75 will change the minor trend to down. This will confirm the shift in momentum to down.

The short-term range is 2765.75 to 2809.00. Its 50% level or pivot at 2787.25 is the first downside target. Trader reaction to this level will make or break the market today.

The main range is 2693.25 to 2809.00. If the minor trend changes to down then its retracement zone at 2751.00 to 2737.50 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index today will be determined by trader reaction to the steep uptrending Gann angle at 2789.25.

A sustained move over 2789.25 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into 2809.00. Overtaking this level could drive the index into the March 13 top at 2814.00. This is another trigger point for a rally into a downtrending Gann angle at 2830.00.

A sustained move under 2789.25 will signal the presence of seller. This should lead to a quick test of the pivot at 2787.25. This is the trigger point for an acceleration to the downside with the next target angle coming in at 2772.00.

Look for further weakness under 2772.00 with 2765.75 the next target. Taking out this level will change the minor trend to down, while putting the market in a position to challenge the major 50% target at 2751.00.