E-mini S&P 500 Index (ES) Futures Technical Analysis – July 27, 2016 Forecast
September E-mini S&P 500 Index futures are trading higher early Wednesday, following a weak attempt to breakout to the downside on Tuesday. Yesterday’s sell-off did confirm Monday’s closing price reversal top, but there wasn’t much of a follow-through to the downside.
Your capital is at risk
The main trend is up according to the daily swing chart. However, the closing price reversal top at 2172.50 may be an indication that the selling is greater than the buying at current price levels. Taking out this level will negate the chart pattern. This will also signal a resumption of the uptrend.
The short-term range is 2142.75 to 2172.50. Its 50% level or pivot is 2157.50. The close over this level and today’s strength is helping to keep the upside momentum intact.
The main range is 2065.75 to 2172.50. If there is a sell-off then its retracement zone at 2119.00 to 2106.50 will become the primary downside target.
Based on yesterday’s close at 2163.30 and the early price action, the direction of the market today is likely to be determined by trader reaction to the pivot at 2157.50.
A sustained move over 2157.50 will indicate the presence of buyers. This could create enough upside momentum to challenge the closing price reversal top at 2172.50. Taking out this top could trigger an acceleration into a steep uptrending angle at 2185.75. Crossing to the strong side of this angle will put the index in a bullish position.
A sustained move under 2157.50 will signal the presence of sellers. The first target is a long-term uptrending angle at 2149.50. This is the trigger point for an acceleration to the downside with the next target coming in at 2125.75.