E-mini S&P 500 Index (ES) Futures Technical Analysis – July 19, 2017 Forecast

September E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. For a third day, the index is posting an inside move which suggests investor indecision and impending volatility. Once again, it looks as if investors will be asked to buy strength at or near all-time highs.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2461.25 will signal a resumption of the uptrend.

The main range is currently 2402.25 to 2461.25. If there is a short-term sell-off then its retracement zone at 2431.75 to 2424.75 will become the primary downside target.

Forecast

For a third time this week, the following scenarios will be in play today.

Firstly, buyers can come in strong and trigger a breakout over 2461.25 then it will be off to the races.

Second, just enough buying comes in to trigger a breakout then the sellers come in to stop the move sending the index lower for the session. If this trap move occurs and the market closes below 2457.57 then a potentially bearish closing price reversal top will form.

If confirmed, this chart pattern could fuel a 2 to 3 day break.

Finally, sellers could show up early, preventing the index from confirming the uptrend. This will also signal that the buyers have disappeared. This can cause current longs to begin pitching their positions, also leading to a possible 2 to 3 day correction.

The direction of the index today will be determined by the direction of the momentum. Also we’re in a news driven market so we could see volatility spikes throughout the session.