E-mini S&P 500 Index (ES) Futures Technical Analysis – September 15, 2017 Forecast

December E-mini S&P 500 Index futures are trading lower in the pre-market session. The market was under pressure earlier in the session after investors dumped risky assets in reaction to another North Korean missile launch over Japan early Friday. The market has since rallied back slightly from its intraday low at 2487.00.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Today’s lower-low has made 2496.25 a new main top. A trade through this top will signal a resumption of the uptrend.

The main range is 2419.25 to 2496.25. Its retracement zone at 2457.75 to 2448.50 is the primary downside target.

Forecast

Based on the current price at 2491.00 (1030 GMT) and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the downtrending angle at 2492.25.

Overtaking 2492.25 and sustaining the move should lead to a quick rally into the next angle at 2494.25. This is the last potential resistance angle before the 2496.25 main top.

Taking out 2496.25 will signal a resumption of the uptrend. There is no resistance, but a closing price reversal top will signal that the selling is greater than the buying at current price levels.

A sustained move under 2492.25 will indicate the presence of sellers. Taking out today’s earlier low at 2487.00 will indicate the selling is getting stronger.

The daily chart is wide open to the downside with the next potential target angle coming in at 2467.25. Since the trend is up, we could see a technical bounce on the first test of this Gann angle.

If 2467.25 is taken out then traders should prepare for break into the main retracement zone at 2457.75 to 2448.50.