E-mini S&P 500 Index (ES) Futures Technical Analysis – July 9, 2019 Forecast
September E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Investors are shedding positions ahead of the start of two days of Congressional testimony by Federal Reserve Chairman Jerome Powell on Wednesday. Investors will be looking for clues on whether Fed policymakers will cut rates at the end of July, as widely expected, or if the central bank thinks the economy is strong enough to maintain current economic policy.
At 13:08 GMT, September E-mini S&P 500 Index futures are trading 2967.25, down 11.25 or -0.39%.
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Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on July 5 at 3006.00.
A trade through 3006.00 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a move through 2914.50.
The short-term range is 2914.50 to 3006.00. Its retracement zone at 2960.25 to 2949.50 is the first downside target. Since the main trend is up, buyers are likely to show up on a test of this area. Look for a technical bounce.
Daily Technical Forecast
Based on the early price action, the direction of the September E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the steep downtrending Gann angle at 2974.00.
Bearish Scenario
A sustained move under 2974.00 will indicate the presence of sellers. This should lead to a test of the short-term 50% level at 2960.25. If it fails to hold then look for the selling to possibly extend into the Fibonacci level at 2949.50, followed by a pair of uptrending Gann angles at 2946.50 and 2939.50.
Bullish Scenario
Overtaking and sustaining a rally over 2974.00 will signal the return of buyers. Overcoming the uptrending Gann angle at 2978.50 will indicate the buying is getting stronger. If this move creates enough upside momentum, we could see a rally into a downtrending Gann angle at 2990.00. This is also the trigger point for an acceleration into another downtrending Gann angle at 2998.00.