E-mini S&P 500 Index (ES) Futures Technical Analysis – August 20, 2018 Forecast

September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. Volume is light, but the market is in a position to challenge the August 7 top at 2863.75.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2863.75 will signal a resumption of the uptrend. A trade through 2803.00 will change the main trend to down.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 2859.25 and the uptrending Gann angle at 2851.00.

Taking out 2859.25 will indicate the presence of buyers. This could create the upside momentum needed to challenge the main top at 2863.75. Taking out this level will signal the resumption of the uptrend. The index could run if buyers come in strong. The next target is the contract high at 2889.00.

The inability to overcome 2859.25 will signal the presence of sellers, or indicate the buying is weak. This could drive the index into an uptrending Gann angle at 2851.00. This angle has been guiding the index higher for the last two sessions.

If 2851.00 fails then look out to the down side. The next target angle is 2839.00. This is followed by another steep uptrending Gann angle at 2827.00.

Basically, look for a bullish tone to develop on a sustained move over 2859.25 and for a bearish tone to develop on a sustained move under 2851.00.