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. A strong performance in the cash market should help to drag the futures market higher. Last week, the cash S&P 500 Index reached an all-time high.

Daily Technical Analysis

The main trend is up according to the daily swing chart. It was reaffirmed last week when buyers took out 2874.00. This level is new minor support. If the early upside momentum continues then look for the buying to extend into the January 29 top at 2889.00.

There is no resistance above this level, however, due to the prolonged move up in terms of price and time, traders should watch for a potentially bearish closing price reversal top. This chart pattern doesn’t indicate a change in trend, but it will be a sign that the selling is greater than the buying at current price levels.

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.

Daily Technical Forecast

Based on the early price action, today’s trade will be all about momentum.

If the upside momentum continues then look for a rally into 2889.00 and perhaps beyond.

Now that we’ve posted a higher-high, the key number on the downside is Friday’s close at 2876.75. Turning lower for the session will signal the presence of sellers. If this creates enough intraday downside momentum then look for the selling to extend into the steep uptrending Gann angle at 2867.00.

The angle at 2867.00 today is very important because it has been guiding the market higher for eight sessions or since the 2803.00 main bottom on August 15. Momentum will start to shift to the downside if this angle fails as support.