E-mini S&P 500 Index (ES) Futures Technical Analysis – September 26, 2017 Forecast

A recovery in technology stocks is leading to the call for a higher opening in the December E-mini S&P 500 Index futures contract.  However, without strong upside momentum and a commitment to the long side, the index is likely to see limited gains.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on the break through 2487.00 on Monday. The trend will turn up on a move through 2507.25.

The short-term range is 2507.25 to 2485.00. Its 50% level or pivot is 2496.25. The next move in the market may be decided by trader reaction to the 50% level.

The main range is 2419.25 to 2507.25. If the selling pressure resumes under 2485.00 then the next target will become the major retracement zone at 2463.25 to 2452.75.

Daily Forecast

The daily chart indicates the way of least resistance is down. This doesn’t mean the market will go down today but if it does, the moves are likely to be more pronounced. Any rally is likely to be labored because of a series of potential resistance points.

The key Gann angle to watch is the long-term uptrending angle at 2495.25.

A sustained move over 2495.25 will indicate the presence of buyers. This is followed closely by the pivot at 2496.25, and a pair of downtrending angles at 2499.25 and 2503.25. The latter is the last potential resistance angle before the 2507.25 main top.

A sustained move under 2495.25 will signal the presence of sellers. The next target angle comes in at 2491.25. Crossing to the weak side of this angle should lead to a test of yesterday’s low at 2485.00.

Look out to the downside if 2485.00 is taken out with conviction because the next support target doesn’t come in until 2463.25.

The best way to judge the strength of the index today is by its reaction to the long-term uptrending angle at 2495.25.