E-mini S&P 500 Index (ES) Futures Technical Analysis – August 27, 2018 Forecast

September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. There is no resistance at current price levels which means traders should watch for patterns that indicate selling pressure. These include intraday reversal tops and “M” patterns.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The main trend will change to down on a trade through 2803.00.

Today’s session will begin with the index in the window of time for a potentially bearish closing price reversal top. We’ve already had the prolonged move up and the higher-high. Now all we need is a lower close to form the reversal top. A subsequent follow-through to the downside will confirm the chart pattern. This could fuel the start of a minimum 2 to 3 day correction.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index today is likely to be determined by trader reaction to yesterday’s close at 2900.25. It’s a pretty simple chart pattern that’s based on momentum. In other words, we’re going to close higher today or we’re not. An unchanged close in the index is extremely rare.

A sustained move over 2900.25 will indicate the presence of buyers. There’s no target at this time. Any analyst that tells you there is resistance is making it up. After all, how can we have resistance if the market never traded up here before?

A sustained move under 2900.25 will signal the presence of sellers. If this produces enough downside momentum, we could see the start of a steep break with the first target angle coming in at 2875.00.