E-mini S&P 500 Index (ES) Futures Technical Analysis – July 19, 2019 Forecast

September E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The market is being underpinned by the hope of aggressive interest rate cuts by the European Central Bank (ECB) and the U.S. Federal Reserve on July 31.

The early strength is also being fueled by a jump in shares of Microsoft, which rose nearly 3% in the premarket after the tech giant posted quarterly earnings and revenue that topped analyst expectations. However, the market is being primarily supported by Thursday’s dovish comments from New York Federal Reserve President John Williams, who said the central bank needed to “act quickly” when the economy was slowing and rates were low.

At 13:14 GMT, September E-mini S&P 500 Index futures are trading 3005.25, up 7.75 or +0.26%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3023.50 will signal a resumption of the uptrend. A move through 2963.50 will change the main trend to down.

The minor trend is also up. It will change to down on a trade through 2974.50. This will also shift momentum to the downside.

The short-term range is 2963.50 to 3023.50. Its retracement zone at 2993.50 to 2986.50 is support.

The intermediate range is 2914.50 to 3023.50. Its retracement zone at 2969.00 to 2956.00 is also support.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to the downtrending Gann angle at 3007.50.

Bullish Scenario

A sustained move over 3007.50 will indicate the presence of buyers. This could create the upside momentum needed to challenge a pair of downtrending Gann angles at 3015.50 and 3019.50. The latter is the last potential resistance angle before the 3023.50 main top.

Bearish Scenario

A sustained move under 3007.50 will signal the presence of sellers. This could trigger a pullback into the short-term 50% level at 2993.50. Buyers could come in on a test of this level.

If 2993.50 fails as support then look for the selling to possibly extend into the Fibonacci level at 2986.50.

The major support is an uptrending Gann angle at 2978.50. This angle stopped the selling on Thursday at 2974.50. The next long-term uptrending Gann angle is 2971.50. The market starts to open up to the downside under this angle with the next target zone 2969.00 to 2956.00.