E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – July 21, 2016 Forecast

September E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening. The index took out the recent high at 2168.00, but there was no follow-through to the upside. This may be an indication that investors are looking for value after the recent run-up.

The main trend is up according to the daily swing chart. There are no upside targets and the index is still vulnerable to a potentially bearish secondary lower top.

Daily September E-Mini S&P 500 Index

The new short-term range is 2142.75 to 2170.25. Its 50% level or pivot comes in at 2156.25. This price could be controlling the short-term direction of the index today along with the uptrending angle at 2153.75.

A sustained move over 2156.25 will indicate that buyers are coming in to defend the trend and perhaps trigger an increase in momentum to the upside.

A sustained move under 2153.75 will be the first sign of trouble. The daily chart is wide open under this angle with the next potential target a low at 2141.75. This is the trigger point for a steep sell-off with the next major target a support cluster at 2117.50 to 2118.00 today.

The upside bias will remain intact as long as 2153.75 holds as support. A failure at this angle could lead to the start of a steep break. Also, a close under 2167.50 will produce a potentially bearish closing price reversal top.

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.