FX Empire

E-mini S&P 500 Index (ES) Futures Technical Analysis – September 8, 2017 Forecast

James Hyerczyk
Updated

September E-mini S&P 500 Index futures closed slightly higher on Thursday in a lackluster trade. The cash Dow and S&P 500 Index finished lower. Banking stocks drove down both indexes. Disney was a major drag on the Dow.

Disney led media stocks lower, falling over 4 percent. GE shares declined more than 3 percent. Bank of America, Citigroup and Goldman Sachs were all down more than 1 percent, dragging down the major indexes. Insurance stocks also sank as investors grew more concerned over exposure to Hurricane Irma.

Traders failed to respond to the bullish news from Washington. The Senate approved a package that includes Hurricane Harvey recovery funds, a debt ceiling extension and temporary government funding. The unexpected agreement reached on Wednesday between the president and leading Democrats previously boosted stocks.

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

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been drifting to the downside since the minor top was formed on September 1.

A trade through 2479.75 will signal a resumption of the uptrend.

The main range is 2488.50 to 2415.75. Its retracement zone is 2460.75 to 2452.00. This zone is support.

The short-term range is 2421.00 to 2479.75. Its retracement zone is 2450.25 to 2443.50. If there is a short-term correction then this zone will become the primary downside target.

Forecast

Based on Thursday’s close at 2466.50, the direction of the index is likely to be determined by trader reaction to the downtrending angle at 2466.50.

Overtaking 2466.50 will indicate the presence of buyers. If this creates enough upside momentum, we could see a move into a Gann angle cluster at 2477.00 to 2477.50. This is followed by the minor top at 2479.75. This is the trigger point for a potential acceleration into 2488.50.

A sustained move under 2466.50 will signal the presence of sellers. The first target is the main Fibonacci level at 2460.75. Crossing to the weak side of the Fib level could lead to an acceleration into a pair of 50% levels and an uptrending angle at 2452.00, 2450.25 and 2449.00.

Basically, we’re looking for a bullish tone to develop on a sustained move over 2466.50 and a bearish tone to develop on a sustained move under 2460.75.

This article was originally posted on FX Empire

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