E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – July 10, 2018 Forecast

September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The rally is being driven by momentum and it will end when momentum shifts. One indicator of a shift in momentum is a closing price reversal top. Today is the seventh day up from the last main bottom which puts it in the window of time for this chart pattern. So continue to trade the trend, but watch for signs of a short-term top. These include intraday reversals and “M” formations.

 E-mini S&P 500 Index
Daily September E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out the previous top at 2796.00. If the upside momentum continues then look for the rally to extend into the March 13 top at 2814.00.

A break back under 2796.00 will be the first sign of weakness.

E-mini S&P 500 Index
Daily September E-mini S&P 500 Index (Close-Up)

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to yesterday’s close at 2787.50.

A sustained move over 2787.50 will indicate the presence of buyers. If this move generates enough upside momentum then buyers could regain 2796.00, putting it in a position to challenge 2814.00. Overtaking this level will indicate the buying is getting stronger with the next target angle coming in at 2833.00.

A sustained move under 2787.50 will signal the presence of sellers. This will put the index in a position to post the potentially bearish closing price reversal top.

The first downside target today is a downtrending Gann angle at 2777.00. Look for an acceleration to the downside if this angle fails as support. The next target is the steep uptrending Gann angle at 2749.25.

Watch the price action and read the order flow at 2787.50 all session. Trader reaction to this level will tell us if the buyers are still in charge or if sellers are taking control.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.