Daily September E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – September 11, 2013 Forecast

September E-mini S&P 500 Index futures are trading a little better this morning shortly ahead of the opening. With the uncertainty lifted over whether the Fed will begin tapering by the end of the month, traders are now focusing on the possibility Syria will surrender its chemical weapons to the U.S.

There are no major economic reports today so investors will be watching the headlines to see if a deal can be made between Syria and the U.S. to avoid the latter from launching an attack.

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

Technically, the main trend is up. Momentum slowed a little overnight because of overbought conditions. The market is getting close to the contract high at 1705.00 so some investors are paring positions, leading to the drop in momentum.

On Tuesday, the Index closed over a slow-moving downtrending angle, putting the market in a position to continue the rally today. This angle is now support at 1678.00. A sustained move over this level could trigger a rally to 1691.50 today.

Because of the prolonged rally in terms of price and time, investors should start to watch for a closing price reversal top. This chart pattern may not change the trend to down but could trigger the start of a 2 to 3 day break. There is plenty of room to the downside should sentiment begin to shift. The first sign of weakness will be an intraday break under 1678.00.

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.

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