E-mini S&P 500 Index (ES) Futures Technical Analysis – July 27, 2018 Forecast

September E-mini S&P 500 Index futures are trading slightly better shortly before the release of the second-quarter U.S. GDP report.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. For a second session, the index is trading inside Wednesday’s wide range. This indicates investor indecision and impending volatility. A trade through 2849.50 will signal a resumption of the uptrend. The trend will change to down on a move through 2792.50.

The short-term range is 2792.50 to 2849.50. Its retracement zone is 2821.00 to 2814.25. Since the main trend is up, buyers may step in on a test of this zone. If 2814.25 fails as support then momentum will shift to the downside.

The main range is 2693.25 to 2849.50. If the trend changes to down then look for a move into 2771.25 to 2755.25. Even though the trend will be down, we could see a technical bounce on a test of this zone because it represents value.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index on Friday will be determined by trader reaction to 2849.50.

A sustained move over 2849.50 will indicate the presence of buyer. If this move creates enough upside momentum, we could see a move into 2889.00, the January 29 top.

A sustained move under 2849.50 will signal the presence of sellers. This could drive the index into 2821.00 to 2814.25. If 2814.25 fails as support then look for the selling to extend into 2792.50.

Taking out 2849.50 then breaking back under 2841.25 will indicate the selling is greater than the buying at current price levels. This could lead to the formation of a potentially bearish closing price reversal top.