E-mini S&P 500 Index (ES) Futures Technical Analysis – July 19, 2018 Forecast

September E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening. The index is trading inside yesterday’s range which suggests investor indecision. The index is now up 14 days from the last main bottom, which means it remains vulnerable to a closing price reversal top. Buyers are also trying to establish support on the bullish side of the March 13 top at 2814.00.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Taking out 2818.25 will signal a resumption of the uptrend.

Overcoming 2818.25 then breaking back under 2816.00 will put the index in a position to form a potentially bearish closing price reversal top.

Daily Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the former top at 2814.00.

A sustained move over 2814.00 will indicate the presence of buyers. If this generates enough upside momentum then look for buyers to take a run at yesterday’s high at 2818.25. This could trigger a further rally into a long-term downtrending Gann angle at 2829.50.

Look for a technical bounce on profit-taking on the first test of 2829.50. Overcoming it, however, will indicate the buying is getting stronger. The daily chart indicates there is plenty of room to the upside with the next target angle coming in at 2859.25.

A sustained move under 2814.00 will signal the presence of sellers. This could lead to a retest of today’s low at 2806.25, followed by a steep uptrending Gann angle at 2805.25. This Gann angle, moving up at a pace of 8 points per day from the 2693.25 main bottom, has been guiding the index higher for 14 sessions, or since June 28.

Crossing to the weak side of the Gann angle at 2805.25 will be the first sign of a shift in momentum to down. This could lead to increased selling pressure on profit-taking.

Also watch for the higher-high, lower-close chart pattern. If this occurs, we could see the start of a 2 to 3 day correction.