E-mini S&P 500 Index (ES) Futures Technical Analysis – July 25, 2017 Forecast

September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The index is within striking distance of its all-time high at 2476.25. Taking out this top will signal a resumption of the uptrend. The move will also make 2462.75 a new minor bottom.

Currently, the main range is 2402.25 to 2476.25. If the index holds inside this range and the selling pressure increases then we could see a retracement all the way back to 2439.25 to 2430.50.

The chart pattern is pretty simple, mostly because we are in a news driven market and the upside momentum as well as the trend are up.

Today’s rally is being fueled by earnings reports that largely beat Wall Street expectations.

The early price action indicates that the market has absorbed yesterday’s weakness after the close that was driven by a dip in Google-parent Alphabet. Today’s pre-market rally is being fueled by a sharp rise in Caterpillar and United Technologies stock, which both posted bottom line results that topped estimates.

Besides earnings, investors will be watching the political area today. The Russia-linked scandal is still a lingering issue as well as the president’s policies, particularly health care reform.