E-mini S&P 500 Index (ES) Futures Technical Analysis – July 5, 2017 Forecast

September E-mini S&P 500 Index futures are trading slightly higher shortly before the cash market opening. The market is currently trading inside its June 29 range, suggesting investor indecision and impending volatility.

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. This could drive the market into the next main top at 2451.50.

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. Trader reaction to this zone sill likely set the tone for the rest of the week.

The main range is 2341.75 to 2451.50. If there is a sharp break then its retracement zone at 2396.50 to 2383.50 will become the primary downside target.

Forecast

Based on the current price at 2429.00 and the earlier price action, the direction of the index today will likely be determined by trader reaction to the 50% level at 2426.75.

A sustained move over 2426.75 will signal the presence of buyers. This could drive the index into the Fibonacci level at 2432.75. This is the trigger point for an acceleration into the main top at 2445.00.

A sustained move under 2426.75 will indicate the presence of sellers. The daily chart is wide open to the downside so this could trigger an acceleration into potential targets at 2402.25 and 2396.00.

Basically, look for an upside bias to develop on a sustained move over 2432.75 and a downside bias to develop on a sustained move under 2426.75.