E-mini S&P 500 Index (ES) Futures Technical Analysis – September 12, 2017 Forecast

September E-mini S&P 500 Index futures are trading higher shortly after the opening. Traders are looking forward to a major event from Apple. Investors are also reacting to the news of minimal damage from Hurricane Irma on the Florida economy. Investors are also becoming less-worried about North Korea after the rogue nation failed to test another nuclear weapon over the week-end. Finally, investors are also looking forward to U.S. tax reform. Earlier today, Treasury Secretary Mnuchin was said to be considering backdating a tax cut to January 1. He also said this would be a “boon” to the economy.

Technical Analysis

The main trend is up according to the daily swing chart. The index is trading at a new all-time high on Tuesday. A trade back under the previous top at 2488.50 will be a sign that the selling is greater than the buying at current price levels.

Forecast

The direction of the S&P 500 Index is likely to be determined by trader reaction to a steep uptrending angle at 2493.00.

Crossing to the strong side of the angle at 2493.00 will put the index in a bullish position. There is no resistance at this time, but a closing price reversal top will indicate the buying is slowing down or that the selling pressure is increasing.

The inability to overcome 2493.00 will also indicate the presence of sellers. A move back under the old top at 2488.50 will indicate the selling is getting stronger. The daily chart is wide open to the downside so if selling volume begins to increase, investors may set their eyes on the next uptrending angle, currently at 2457.00.

Watch the price action and read the order flow at 2493.00 all session. Traders reaction to this angle will determined the direction of the market today.