E-mini S&P 500 Index (ES) Futures Technical Analysis – August 14, 2018 Forecast

September E-mini S&P 500 Index futures opened higher on Tuesday, driven by stronger-than-forecast quarterly results from Home Depot and an easing of the financial turmoil in Turkey. Investors are attempting to end a four-day decline, the benchmark indexes longest losing streak since March.

 

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2791.00 will change the main trend to down. A move through 2863.75 will signal a resumption of the uptrend.

The minor range is 2863.75 to 2820.00. Its 50% level or pivot at 2841.00 could control the price action.

The short-term range is 2791.00 to 2863.75. Its retracement zone at 2827.25 to 2818.75 provided support on Monday when the selling stopped at 2820.00.

The major support zone is 2778.50 to 2758.25.

Daily Technical Forecast

On the downside, the first support is a 50% level at 2827.25, followed by a long-term uptrending Gann angle at 2821.25 and a Fibonacci level at 2818.75.

Crossing to the weak side of the uptrending Gann angle will be the first sign of weakness. However, the trigger point for the start of an acceleration to the downside is the Fibonacci level at 2818.75.

On the upside, the key area is a resistance cluster at 2841.00 to 2843.75. Overtaking the downtrending Gann angle at 2843.75 will indicate the buying is getting stronger. This will also turn 2841.00 into support.

If the upside momentum continues through 2843.75 then look for a possible test of downtrending Gann angles at 2853.75 and 2858.75. The latter is the last potential resistance angle before the 2863.75 main top.

Basically, in order to continue the upside bias, buyers are going to have to take out and sustain a rally over 2843.75, while a sustained move under 2841.00 will signal weakness.