E-mini S&P 500 Index (ES) Futures Technical Analysis – August 13, 2015 Forecast
September E-mini S&P 500 Index futures are called better shortly before the cash market opening. The index followed through to the upside during the pre-market session after yesterday’s strong surge.
The main trend is down according to the daily swing chart, but yesterday’s closing price reversal bottom shifted momentum to the upside. The main range is 2126.25 to 2046.50. The index is currently trading inside its retracement zone at 2086.25 to 2095.75. Trader reaction to this zone will likely determine the direction of the market during the regular session.
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Based on the current price at 2088.25, the first support is the 50% level at 2086.25. Falling below this level will indicate the presence of sellers. Crossing to the weak side of the steep downtrending angle at 2085.75 will indicate the selling is getting stronger.
The daily chart opens up to the downside under 2085.75 with the next major targets coming in at 2062.25, 2054.25 and 2050.25.
Holding above 2086.25 will indicate the presence of buyers. Look for a labored rally because of a series of resistance angles at 2090.25, 2093.75, 2095.75, 2097.75 and 2099.75. Yes, it is crowded up there.
Taking out 2101.75 will turn the main trend to up on the daily chart. This could trigger a further rally into a downtrending angle at 2108.25 and another main top at 2109.25.
Based on the early price action, watch the price action and order flow at 2086.25 after the opening. This will tell us whether the bulls or the bears are in control.