E-mini S&P 500 Index (ES) Futures Technical Analysis – July 9, 2018 Forecast

September E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The rally is being fueled by increased demand for risky assets, mostly in reaction to Friday’s mixed U.S. jobs report that suggested the Fed may have to back away from a fourth rate hike this year if average hourly earnings continue to come in weak. The price action also suggests that investors are shrugging off the lingering trade dispute between the United States and China.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2796.00 will signal a resumption of the uptrend. A move through 2693.25 will change the main trend to down.

The main range is 2796.00 to 2693.25. With the market currently trading 2772.50, its retracement zone at 2756.75 to 2744.50 should be considered support. Holding above this zone will help support the current strong upside bias.

Daily Technical Forecast

Based on the current price at 2772.50 and the upside momentum, we should see a test of a downtrending Gann angle at 2779.00. Watch for a technical bounce on the first test of this angle.

Overcoming 2779.00 will indicate the buying is getting stronger with the next targets a minor top at 2785.25 and another downtrending Gann angle at 2787.50. This angle is the last potential resistance angle before the 2796.00 main top.

A failure to overcome 2779.00 will signal the presence of sellers. This could lead to a retest of a downtrending Gann angle at 2762.00. Under this angle is the main Fibonacci level at 2756.75.

Look for an acceleration to the downside if 2756.75 fails as support. The next target area is a 50%/Gann angle combination at 2744.50 and 2741.25 respectively.