E-mini S&P 500 Index (ES) Futures Technical Analysis – July 26, 2019 Forecast

September E-mini S&P 500 Index futures are called higher based on the pre-market trade. The index is primarily being supported by strong earnings from technology giants Alphabet and Intel. U.S. Advance GDP is also lending some support. It came in lower than the previous report, but beat the estimate.

Google’s parent company, Alphabet reported better-than-expected earnings and announced a massive $25 billion share repurchase program. Intel rose 4.5% on earnings and revenue that beat analyst expectations. The U.S. economy expanded by 2.1% in the second quarter. This was lower than the previously reported 3.1%, but higher than the 1.8% forecast.

At 12:57 GMT, September E-mini S&P 500 Index futures are trading 3014.25, up 7.75 or +0.25%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum could shift to the downside if yesterday’s closing price reversal top is confirmed.

A trade through 3027.75 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 2998.00 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day correction. The main trend will change to down on a trade through 2969.50.

The short-term range is 2969.50 to 3027.75. Its 50% level or pivot at 2998.50 is controlling the direction of the index today.

If the main trend changes to down then look for a correction into its retracement zone at 2949.50 to 2931.25.

Daily Swing Chart 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 pivot at 2998.50 and yesterday’s low at 2998.00.

Bullish Scenario

A sustained move over 2998.50 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into yesterday’s high at 3027.75. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 2998.00 will signal the presence of sellers. This will also confirm the closing price reversal top. The daily chart is wide open under this level with the next support a main bottom at 2969.50. Taking out this bottom will change the main trend to down. This could lead to a further break into the bottom at 2963.50 and the intermediate 50% level at 2949.50.