E-mini S&P 500 Index (ES) Futures Technical Analysis – August 2, 2019 Forecast
September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The market is being pressured by concerns over an escalation of tensions between the United States and China after President Donald Trump announced on Thursday additional tariffs. Traders are also responding to a mixed U.S. non-farm payrolls report.
At 12:41 GMT, September E-mini S&P 500 Index futures are trading 2939.50, down 12.50 or -0.43%.
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Non-Farm Employment Change showed the economy added 164,000 jobs, hitting the forecast. Average Hourly Earnings were higher than estimated at 0.3% and the Unemployment Rate came in at 3.7%, slightly above the forecast.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The next downside target is the main bottom at 2914.50. A trade through this bottom will reaffirm the downtrend. This is followed by 2871.50. The main trend will change to up on a trade through 3029.50.
The main range is 2871.50 to 3029.50. Its retracement zone at 2950.50 to 2931.75 is currently being tested.
The intermediate range is 2914.50 to 3029.50. Its retracement zone at 2958.50 to 2972.00 is potential resistance.
Daily Technical Forecast
Based on the early price action, the direction of the September E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to the Fibonacci level at 2931.75 and the 50% level at 2950.50. Inside this zone are a pair of Gann angles at 2949.50 and 2941.50. Holding inside the retracement zone will produce a choppy, two-sided trade.
Bearish Scenario
A sustained move under 2931.75 will indicate the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next target the main bottom at 2914.50, followed by an uptrending Gann angle at 2906.50.
Bullish Scenario
A sustained move over 2950.50 will signal the presence of buyers. This could trigger an acceleration into the intermediate Fibonacci level at 2958.50. Overtaking this level could trigger a further rally into the uptrending Gann angle at 2966.50, followed by the intermediate 50% level at 2972.00.