E-mini S&P 500 Index (ES) Futures Technical Analysis – July 18, 2017 Forecast
September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Investors are reacting to the earnings reports from Bank of America, Johnson & Johnson and Goldman Sachs. Weakness in the U.S. Dollar is also pressuring the benchmark index. IBM reports today after the close.
The main trend is up according to the daily swing chart. However, the market hasn’t made a higher-high for the past two days. A trade through 2461.25 will signal a resumption of the uptrend.
Like yesterday, we can watch for three things to happen today. Firstly, buyers can come in strong and take out 2461.25 with conviction. Secondly, sellers could stop the market from resuming the uptrend. This could hold the market inside last Friday’s range for a second session. This would leave the market vulnerable to the downside. Thirdly, buyers could take out 2462.15 then sellers could stop the rally with enough force to drive the index lower for the session. This would produce a potentially bearish closing price reversal top.
There is no identifiable resistance at this time, but if there is a sharp sell-off then 2431.75 will become the primary downside target.
If buyers take out 2462.25 then watch the price action at yesterday’s close at 2458.50 all session. This price will then have to hold as support, or the reversal top will start forming.
This article was originally posted on FX Empire