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E-mini S&P 500 Index (ES) Futures Technical Analysis – July 23, 2019 Forecast

James Hyerczyk

September E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. Concerns over Fed policy are taking a backseat on Tuesday with investors shifting their focus to a number of better-than-expected earnings reports.

Early in the session, the index is getting a boost from a jump in shares of Coca-Cola and United Technologies after both companies reported second-quarter earnings. Shares of Coca-Cola were up 1.9% higher while United Technologies advanced 2.3%.

At 11:53 GMT, September E-mini S&P 500 Index futures are trading 2997.00, up 8.00 or +0.27%.

Daily September E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower despite the early strength.

A trade through 3023.50 will signal a resumption of the uptrend. A move through 2963.50 will change the main trend to down.

The minor trend is down. This is controlling the momentum. A trade through 3009.75 will change the minor trend to up. A move through 2969.50 will indicate weakness.

The short-term range is 2963.50 to 3023.50. Crossing to the strong side of its retracement zone at 2993.50 to 2986.50 is helping to generate today’s upside bias. Crossing the 50% level or pivot at 2996.50 will indicate the buying is getting stronger.

The intermediate range is 2914.50 to 3023.50. Its retracement zone at 2969.00 to 2956.00 is support.

Daily Technical Forecast

Based on the early price action and the current price at 2997.00, the direction of the September E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 2999.50.

Bullish Scenario

A sustained move over 2999.50 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the 3009.75 then the downtrending Gann angle at 3011.50. Overtaking these levels will indicate the buying is getting stronger with the next target angle coming in at 3017.50. This is the last potential resistance angle before the 3023.50 main top.

Bearish Scenario

A sustained move under 2999.50 will signal the presence of sellers. This could trigger a labored break into the short-term 50% level at 2993.50, followed by the support cluster at 2986.50. Buyers could return on these moves.

If 2986.50 fails as support then look for the selling to possibly extend into the uptrending Gann angle at 2979.50. This angle stopped the selling at 2969.50 on July 19.

This article was originally posted on FX Empire

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