E-mini S&P 500 Index (ES) Futures Technical Analysis – July 23, 2018 Forecast

September E-mini S&P 500 Index futures are trading flat shortly before the cash market opening. Early in the session, the index broke sharply, taking out last week’s low in the process before clawing back to break even.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2818.25 will signal a resumption of the uptrend.

Last week’s closing price reversal top on the weekly chart is also exerting some downside pressure. A trade through 2818.25 will also negate that potentially bearish chart pattern.

The minor trend is also up. A trade through 2789.75 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 2789.75 to 2818.25. Its 50% level or pivot at 2804.00 is acting like resistance early in the session.

The main range is 2693.25 to 2818.25. If the minor trend changes to down then its retracement zone at 2755.75 to 2741.00 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to the pivot at 2804.00 and the downtrending Gann angle at 2806.25.

A sustained move under 2804.00 will indicate the presence of sellers. If this generates enough downside momentum then look for a test of 2789.75.

Taking out 2789.75 could trigger an acceleration to the downside with the next targets 2768.00, 2765.75, 2757.25 and 2755.75.

A sustained move over 2806.25 will signal the presence of buyers. This could trigger a surge into 2818.25. Taking out this level will signal a resumption of the uptrend with the next targets 2821.25 then 2828.50. The latter is the trigger point for an acceleration to the upside.