E-mini S&P 500 Index (ES) Futures Technical Analysis – September 9, 2015 Forecast

Investors returned on Tuesday, buying September E-mini S&P 500 Index futures with both hands. Fresh stimulus from China also helped underpin the market.

The main trend is down according to the daily swing chart, but the pre-market price action has put the market in a position to turn the main trend to up on a trade through the last swing top at 1992.75.

The main range is 2103.75 to 1831.00. Its retracement zone is 1967.25 to 1999.50. A downtrending angle passes through this zone at 1983.75, making it a valid target also.

The market is currently testing this zone shortly before the cash market opening. Trader reaction to the 50% and Fib levels will likely determine the direction of the market today.

Early in today’s session, the index held the 50% level at 1967.25. This signaled the presence of buyers. The market is currently straddling the downtrending angle at 1983.75. A sustained move over this angle will likely lead to a test of the Fib level at 1999.50.

The Fib level is also a trigger point for an upside breakout into the uptrending angle at 2007.00. Crossing to the bullish side of this angle will put the index in an extremely strong position with the next target a downtrending angle at 2043.75.

A break under the 50% level at 1967.25 will signal the presence of sellers. This could lead to a steep break with the next target an uptrending angle at 1919.00.

Based on the current price at 1985.50, the angle at 1983.75 will determine the early direction of the market. Look for a bullish tone to develop on a sustained move over 1999.50 and a bearish tone to develop on a sustained move under 1967.25.