E-mini S&P 500 Index (ES) Futures Technical Analysis – July 3, 2018 Forecast

September E-mini S&P 500 Index futures are called higher shortly before the cash market opening. Volume is expected to be light today ahead of Wednesday’s U.S. Fourth of July holiday. The major players are on the sidelines and could stay there until early next week so small orders will be able to move the market today so don’t be surprised by exaggerated moves. Just be careful buying strength and selling weakness. Low volume trading days tend to create bull and bear traps.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2679.25 will change the main trend to down.

The minor trend is down. A trade through 2745.50 will change the minor trend to up and shift momentum to the upside. A trade through 2693.25 will negate the closing price reversal bottom and reaffirm the downtrend.

The main range is 2595.75 to 2796.00. Its retracement zone at 2695.75 to 2672.25 is support. It is also controlling the near-term direction of the market.

The short-term range is 2796.00 to 2693.25. Its retracement zone at 2744.75 to 2756.75 is the primary upside target. Aggressive counter-trend sellers may show up on a test of this zone in an effort to form a secondary lower top. Taking it out will make 2693.25 a new main bottom.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index today is likely to be determined by trader reaction to the downtrending Gann angle at 2740.00.

A sustained move under 2740.00 will indicate the presence of sellers. If this generates enough downside momentum then we could see a retest of 2695.75, 2693.25 then an uptrending Gann angle 2679.75, followed by a Fibonacci level at 2672.25.

A sustained move over 2740.00 will signal the presence of buyers. This could drive the index into 2744.75, 2745.50 then 2756.75. The latter is the trigger point for an acceleration into a downtrending Gann angle at 2768.00.

Overtaking 2768.00 will indicate the buying is getting stronger with the next target angle coming in at 2782.00. This is the last major downtrending Gann angle before the 2796.00 main top.