E-mini S&P 500 Index (ES) Futures Technical Analysis – August 23, 2018 Forecast

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Volume is light and the market is trading inside yesterday’s range which suggests investor indecision and impending volatility.

At 1157 GMT, the index is trading 2861.75, up 0.50 or +0.02%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2874.00 will signal a resumption of the uptrend. The main trend will change to down on a more through 2803.00.

The minor trend is also up. A new minor top was formed on Wednesday at 2874.00.

The short-term range is 2874.00 to 2846.25. Its 50% level or pivot is 2860.00. This price is controlling the direction of the market today.

The main range is 2803.00 to 2874.00. Its retracement zone at 2838.50 to 2830.00 is the first downside target. Since the main trend is up, buyers could come in on a test of this zone.

Daily Technical Forecast

Based on the current price at 2861.75, the direction of the September E-mini S&P 500 Index today is likely to be determined by trader reaction to the short-term pivot at 2860.00.

A sustained move over 2860.00 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at 2874.00. Taking out this level could lead to an eventual test of the January 29 top at 2889.00.

A sustained move under 2860.00 will signal the presence of sellers. This could trigger a fast break into the uptrending Gann angle at 2851.00. This angle has been guiding the index higher since August 15, or 6 sessions.

Taking out 2851.00 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the first target 2846.25, followed by 2838.50.