E-mini S&P 500 Index (ES) Futures Technical Analysis – August 15, 2018 Forecast

September E-mini S&P 500 Index futures are set to open the cash market lower based on the pre-market trade as the financial crisis in Turkey continues to weigh on investor sentiment. On the U.S. side, retail sales rose more than expected in July, suggesting the economy will continue to remain strong in the third quarter.

Daily Technical Analysis

The main trend is up according to the daily swing chart. It will turn down on a trade through the last swing bottom at 2791.00. A move through 2863.75 will signal a resumption of the uptrend and make 2820.00 a new main bottom.

The minor trend is also up. A trade through 2820.00 will indicate the selling is getting stronger. It will not change the minor trend since yesterday’s move was an inside trade.

The short-term range is 2863.75 to 2820.00. Its 50% level or pivot is 2842.00. This level is resistance. It stopped the rally yesterday and earlier today.

The intermediate range is 2791.00 to 2863.75. Its retracement zone at 2827.50 to 2818.75 is currently being tested. Taking out 2818.75 will shift momentum to the downside.

The main range is 2693.25 to 2863.75. Its retracement zone at 2778.50 to 2758.25 is the primary downside target and major support area.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to 2827.50 and 2818.75. Inside this zone is a longer-term uptrending Gann angle at 2825.25. We can also use this angle as a pivot.

A sustained move over 2825.25 and 2827.50 will indicate the presence of buyers. This could drive the index into the first downtrending Gann angle at 2839.75. Look for selling on the first test of this angle. It has been guiding the market lower for six sessions.

Overtaking 2839.75 will indicate the buying is getting stronger with the first target the pivot at 2842.00. This is followed by a pair of downtrending Gann angles at 2851.75 and 2857.75. The latter is the last potential resistance before the 2863.75 main top.

A sustained move under 2818.75 will signal the presence of sellers. The daily chart is wide open under this level so watch for an acceleration to the downside. The next major target comes in at 2791.00. This is followed by the main 50% level at 2778.50.