September E-mini S&P 500 Index futures closed lower last week while posting an inside range. This indicates investor indecision and impending volatility. Investors are worried about the economy due to the impact of Hurricane Harvey on the Houston, Texas area and Hurricane Irma on the state of Florida and other states. There are also lingering concerns over North Korea.
Weekly Technical Analysis
The main trend is up according to the weekly swing chart. A trade through 2488.50 will signal a resumption of the uptrend. This move will then make 2415.75 a new main bottom.
Taking out 2415.75 will change the minor trend to down. This will also shift momentum to the downside.
The short-term range is 2488.50 to 2415.75. Its 50% level or pivot is 2452.00. The market straddled this level last week. Trader reaction to this level will tell us if buyers or sellers are in control.
The main range is 2314.75 to 2488.50. If there is further selling pressure through 2415.75 then its retracement zone at 2401.25 to 2381.00 will become the primary downside target.
Based on last week's close at 2462.50, the direction of the S&P 500 Index this week will be determined by trader reaction to the 50% at 2452.00.
A sustained move over 2452.00 will indicate the presence of buyers. This could drive the market into a steep downtrending angle at 2468.50, followed by another downtrending angle at 2478.50. The latter is the last potential resistance angle before the 2488.50 main top.
A sustained move under 2452.00 will signal the presence of sellers. Crossing to the weak side of the downtrending angle at 2448.50 will indicate the selling is getting stronger.
The weekly chart is open to the downside under 2448.50 with the next target the minor bottom at 2415.75. This is followed by a long-term uptrending angle at 2410.75.
If 2410.75 fails then look for the selling to extend into 2401.25 to 2381.00.
This article was originally posted on FX Empire
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