September E-mini S&P 500 Index futures are trading lower early in the pre-market session. The market did take out yesterday’s high by a tick, but the move failed to attract enough buyers to extend the rally.
Technical Analysis
The main trend is down according to the daily swing chart. However, momentum has turned to the upside. A move through 2454.75 will signal the upside momentum is increasing. A trade through 2474.00 will turn the main trend to up. The downtrend will resume if 2415.75 fails.
The main range is 2488.50 to 2415.75. Its retracement zone is 2452.25 to 2460.75. This zone is currently being tested.
The intermediate range is 2474.00 to 2415.75. Its retracement zone is 2444.75 to 2452.25.
A new short-term range may be forming between 2415.75 and 2454.75. If the selling pressure increases then its retracement zone at 2435.25 to 2430.50 will become the primary downside target.
Forecast
Based on the current price at 2448.00 at 0804 GMT and the earlier price action, the direction of the index is likely to be determined by trader reaction to the main 50% level at 2452.25.
A sustained move over 2452.25 will signal the presence of buyers. This could create enough upside momentum to challenge the main Fibonacci level at 2460.75. This is the trigger point for a test of 2474.00.
A sustained move under 2474.00 will indicate the presence of sellers. This could lead to a quick test of the intermediate 50% level at 2444.75.
The daily chart opens up to the downside under 2444.75 with the next key target zone 2435.25 to 2430.50.
Volume is extremely light so traders should continue to watch for wide swings.
This article was originally posted on FX Empire