E-mini S&P 500 Index (ES) Futures Technical Analysis – September 22, 2017 Forecast

December E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Investors are shedding risky assets in response to concerns over North Korea.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, short-term momentum appears to be shifting to the downside. A trade through 2507.25 will signal a resumption of the uptrend. The main trend will change to down on a trade through 2487.00.

The short-term range is 2487.00 to 2507.25. Its 50% level or pivot at 2497.25 is controlling the short-term direction of the market. A sustained move under the pivot will give the market a downside bias.

The main range is 2419.25 to 2507.25. If the sell-off gains traction then its retracement zone at 2463.25 to 2452.75 will become the primary downside target.

Daily Forecast

Based on the current price at 2495.25 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to 2497.25.

A sustained move under 2497.25 will indicate the presence of sellers. This could trigger a break into the long-term uptrending angle at 2487.25. Since the main trend is up, look for a technical bounce on the first test of this angle.

If the angle fails then look for the selling pressure to increase. Taking out the main bottom at 2487.00 will change the main trend to down and could trigger an acceleration to the downside.

The daily chart is wide open to the downside under 2487.00 with the next major target the main 50% level at 2463.25.

Overcoming and sustaining a rally over 2497.25 will signal the presence of buyers. This could lead to a labored rally into short-term angles at 2503.25 and 2505.25. The latter is the last potential resistance angle before the 2507.25 main top.

Taking out 2507.25 will signal a resumption of the uptrend.

A close under 2497.25 will form a potentially bearish weekly closing price reversal top.