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E-mini S&P 500 Index (ES) Futures Technical Analysis – July 5, 2018 Forecast

By:
James Hyerczyk
Published: Jul 5, 2018, 11:28 UTC

Based on the early price action, the direction of the September E-mini S&P 500 Index will be determined by trader reaction to the downtrending Gann angle at 2736.00.

E-mini S&P 500 Index

September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The market is being influenced by positive outcomes in Asia and Europe. Our only concern at this time is trading volume because of yesterday’s U.S. holiday, today’s Fed minutes and tomorrow’s U.S. Non-Farm Payrolls report. Low volume is a concern today because it tends to limit the success of momentum trades.

E-mini S&P 500 Index
Daily September E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower.

The minor trend is down. This is controlling the direction of momentum. A trade through 2745.50 will change the minor trend to up. This will also shift momentum to the upside.

Momentum will continue to trend lower if 2693.25 fails as support. The main trend will change to down on a move through 2679.25.

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 index.

The short-term range is 2796.00 to 2693.25. Its retracement zone at 2744.75 to 2756.75 is the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index will be determined by trader reaction to the downtrending Gann angle at 2736.00.

A sustained move under 2736.00 will indicate the presence of sellers, or the lack of buyers. The first major support is 2695.75, followed by 2693.25. Additional support is an uptrending Gann angle at 2681.75, followed by a Fibonacci level at 2672.25.

A sustained move over 2736.00 will signal the presence of buyers. This could trigger an acceleration into the short-term 50% level at 2744.75, followed by the minor top at 2745.50 and the Fibonacci level at 2756.75. Another downtrending Gann angle comes in at 2766.00.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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