E-mini S&P 500 Index (ES) Futures Technical Analysis – August 25, 2016 Forecast
September E-mini S&P 500 Index futures are called lower shortly before the cash market opening. Investors appear to be in no hurry to enter the market at current price levels. This could be a sign that they are looking for value. Additionally, no one seems to what to jump in the market ahead of Fed Chair Janet Yellen’s speech on Friday.
Thirdly, they have economic data to go over today as well as tomorrow’s GDP report. Finally, it’s still summer and the major fund managers are taking late vacations that typically last until after Labor Day.
Your capital is at risk
This all adds up to thin, and at times, volatile trading conditions. So be careful chasing rallies and sell-offs. It is wiser to use support and resistance to enter, rather than momentum when volume is below average.
Technically, the main trend is up according to the daily swing chart. However, momentum has been to the downside since the index posted a new contract high on Tuesday. A trade through this price at 2191.50 will signal a resumption of the uptrend. A move through 2165.50 will change the main trend to down.
The main range is 2141.50 to 2191.50. Its retracement zone at 2166.50 to 2160.50 is the primary downside target.
The short-term range is 2165.50 to 2191.50. Its 50% level or pivot at 2178.50 is controlling the near-term direction of the market.
Watch the price action and read the order flow at 2175.50 today. Trader reaction to this uptrending angle should set the tone for the day.
A sustained move under 2175.50 will indicate the presence of sellers. This could create enough downside momentum to challenge the main 50% level at 2166.50. This is followed closely by the main bottom at 2165.50. This price is a possible trigger point for an extension into the main Fib at 2160.50 and another uptrending angle at 2158.50.
Overtaking the angle at 2175.50 will signal the presence of buyers. This could lead to a quick rally into the 50% level at 2178.50.