E-mini S&P 500 Index (ES) Futures Technical Analysis – July 6, 2018 Forecast

September E-mini S&P 500 Index flipped lower after an early rally ran into sellers after testing a short-term resistance area. Position-squaring ahead of the U.S. Non-Farm Payrolls report also fueled the selling pressure.

At 1221 GMT, September E-mini S&P 500 Index futures are trading 2733.25, down 5.25 or -0.19%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend changes to down on a trade through 2693.25.

The minor trend is up. It turned up earlier today when buyers took out 2745.50. This also shifted momentum to the upside. The lack of follow-through to the upside on this move is a concern, however.

The main range is 2595.75 to 2796.00. Its retracement zone at 2695.75 to 2672.25 is controlling the longer-term direction of the index. This area provided support last week when buyers put in a bottom at 2693.25.

The short-term range is 2796.00 to 2693.25. Its retracement zone at 2744.75 to 2756.75 is the primary upside target. It was tested earlier today when the index traded 2747.50. This zone is controlling the near-term direction of the index. Aggressive counter-trend sellers are trying to form a potentially bearish secondary lower top. Buyers are trying to resume the uptrend in an effort to make 2693.25 a more important main bottom.

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 50% level at 2744.75 and the downtrending Gann angle at 2732.00.

A sustained move over 2744.75 will indicate the presence of buyers. This could fuel a surge into the Fib level at 2756.75, followed closely by a downtrending Gann angle at 2764.00.

The Gann angle at 2764.00 is the trigger point for an acceleration into the next downtrending Gann angle at 2780.00. This is the last potential resistance angle before the main top at 2796.00.

A sustained move under 2744.75 will signal the presence of sellers. However, taking out 2732.00 should trigger an acceleration to the downside with the next target angle coming in at 2713.25.

If 2713.25 fails as support then look for the selling to extend into the next uptrending Gann angle at 2703.25. This is the last potential support angle before the major 50% level at 2695.75 and the last main bottom at 2693.25.