E-mini S&P 500 Index (ES) Futures Technical Analysis – August 24, 2018 Forecast

September E-mini S&P 500 Index futures are trading flat during the pre-market session. The index is trading inside yesterday’s range which suggests investor indecision and impending volatility.

At 1206 GMT, the index is trading 2063.25, up 5.25 or +0.18%.

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. This is followed by the January 29 main top at 2889.00. A trade through 2803.00 will change the main trend to down.

The minor trend is also up. A trade through 2846.25 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 2874.00 to 2846.25. Its 50% level or pivot is 2860.00. The index is straddling this pivot for the third straight session.

The short-term range is 2803.00 to 2874.00. Its retracement zone at 2838.50 to 2830.00 is the primary downside target. An uptrending Gann angle passes through this zone at 2831.00, making it a valid downside target.

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 short-term pivot at 2860.00 and the uptrending Gann angle at 2859.00.

A sustained move over 2860.00 will indicate the presence of buyers. If this move creates enough upside potential then look for buyers to make a run at the minor top at 2869.75 then the main top at 2874.00. Overtaking 2874.00 could create the momentum needed to test the contract high at 2889.00.

A sustained move under 2859.00 will signal the presence of sellers. The daily chart is wide open under this Gann angle with the first target the minor bottom at 2846.25. Taking out this level could create the downside momentum needed to challenge the short-term 50% level at 2838.50, followed by the support cluster at 2831.00 to 2830.00.

Basically, look for an upside bias to develop on a sustained move over 2860.00 and a downside bias to develop on a sustained move under 2859.00.