E-mini S&P 500 Index (ES) Futures Technical Analysis – July 2, 2019 Forecast

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The index is trading inside yesterday range, which tends to indicate investor indecision and impending volatility. Following Monday’s gap higher opening and subsequent follow-through to the upside, the buying faded all session, leading to today’s muted trade.

At 13:10 GMT, September E-mini S&P 500 Index futures are trading 2967.00, down 0.75 or -0.03%.

After Saturday’s decision to resume trade talks between the United States and China triggered a surge to the upside, buying pressure has faded following Trump’s threat of additional tariffs against the European Union.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2981.75 will signal a resumption of the uptrend. A trade through 2914.50 will change the main trend to down. This is highly unlikely, but there is room for a normal 50% to 61.8% retracement.

The short-term range is 2914.50 to 2981.75. Its retracement zone at 2948.00 to 2940.25 is the first downside target. Since the main trend is up, buyers are likely to come in on a test of this zone.

Daily Technical Forecast

Based on the early price action, the September E-mini S&P 500 Index can move in either direction. The inside trading range suggests there is no particular bias as this time. The direction essentially comes down to whether investors want to buy strength or play for a pullback into support.

Bullish Scenario

If investors decide to buy strength then they may take a run at a pair of uptrending Gann angles at 2975.50 and 2978.50. Crossing to the strong side of these angles will put the index in a position to challenge yesterday’s high at 2981.75.

Bearish Scenario

If traders press the index hard enough then look for a potential break into a 50% level at 2948.00, followed closely by an uptrending Gann angle at 2946.50. Since the main trend is up, buyers are likely to come in on a test of this area. This will be trying to form a secondary higher bottom.

If 2948.00 fails as support then look for the selling to extend into the Fibonacci level at 2940.25.