E-mini S&P 500 Index (ES) Futures Technical Analysis – July 3, 2017 Forecast

September E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. Volume was a little light during the pre-market session. This could carry over into the regular session. The major players may be on the sidelines ahead of Tuesday’s U.S. Fourth of July bank holiday. We also have the U.S. Non-Farm Payrolls report on Friday so the major traders may decide to take off the whole week.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2445.00 will change the main trend to up. A move through 2402.25 will signal a resumption of the downtrend.

The short-term range is 2451.50 to 2402.25. Its retracement zone is 2426.75 to 2432.75. This zone is currently being tested.

Forecast

Based on the current price at 2432.25 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the short-term Fibonacci level at 2432.75.

A sustained move over 2432.75 will indicate the presence of buyers. This could create the momentum needed to challenge the main top at 2445.00. This is the trigger point for a possible test of the 2451.50 main top.

The inability to overcome 2432.75 will signal the presence of sellers. However, the trigger point for a steep sell-off is the 50% level at 2426.75. The daily chart opens up under this level with 2402.25 the next possible target.

Basically, look for the upside bias to continue on a sustained move over 2432.75 and for a downside bias to begin on a sustained move under 2426.75.