E-mini S&P 500 Index (ES) Futures Technical Analysis – July 22, 2019 Forecast

September E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. The move is being supported by hopes of a 25-basis point rate cut and better-than expected earnings. According to FactSet, more than 15% of the S&P 500 has posted quarterly results. Of those companies, 78.5% have topped analyst expectations for earnings while 67% have reported better-than-expected quarterly revenues.

At 14:08 GMT, September E-mini S&P 500 Index futures are trading 2986.50, up 9.50 or +0.32%.

Daily Technical Analysis

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

The minor trend is down. This is controlling the momentum. A trade through 3009.75 will change the minor trend to up. This will shift momentum to the upside.

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

The intermediate range is 2914.50 to 3023.50. Its retracement zone at 2969.00 to 2956.00 is support. The top of this area stopped the selling on Friday. Additionally, the main bottom at 2963.50 falls inside this zone.

Daily Technical Forecast

Based on the early price action and the current price at 2986.50, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 2986.50.

Bullish Scenario

A sustained move over 2986.50 will indicate the presence of buyers. This could trigger an acceleration to the upside with the short-term 50% level at 2993.50 the next potential target.

Taking out 2993.50 could generate the upside momentum needed to challenge the downtrending Gann angle at 3003.50.

Bearish Scenario

A sustained move under 2986.50 could lead to a labored break with potential support targets 2982.50 and 2975.50. If this angle fails then look for the selling to possibly extend into the intermediate 50% level at 2969.00.

If 2969.00 fails as support then look for the selling to possibly extend into the main bottom at 2963.50, followed by the Fibonacci level at 2956.00.