E-mini S&P 500 Index (ES) Futures Technical Analysis – August 28, 2019 Forecast

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The market is being pressured by fears of a recession in reaction to an inverted yield curve, which tends to indicate an impending recession. The news is also driving down bank stocks because an inverted yield curve means lower profits.

At 12:56 GMT, September E-mini S&P 500 Index is trading 2860.50, down 5.00 or -0.18%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2810.25 will signal a resumption of the downtrend. The main trend will change to up on a move through 2939.75.

The minor trend is also down. A trade through 2899.50 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 2732.25 to 3029.50. Its retracement zone at 2881.00 to 2845.75 is controlling the longer-term direction of the index. The market is currently trading inside this range as buyers continue to try to form a support base.

The short-term range is 3029.50 to 2775.75. Its retracement zone at 2902.75 to 2932.50 is resistance. Overtaking this zone will put the index in a strong position.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2860.50, the direction of the September E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to the main 50% level at 2881.00.

Bearish Scenario

A sustained move under 2881.00 will indicate the presence of sellers. The first downside target is the main Fibonacci level at 2845.75. Taking out this level will indicate the selling is getting stronger.

The first downside target is the minor bottom at 2810.25. If this level fails then look for the selling to possibly extend into the next main bottom at 2775.75.

Bullish Scenario

Overtaking 2881.00 will signal the return of buyers. This could trigger a rally into the minor top at 2899.50, followed closely by the short-term 50% level at 2902.75. Overtaking this level could fuel a rally into the short-term Fibonacci level at 2932.50.

A pair of tops at 2939.75 and 2944.25 remain strong resistance. Overtaking them could trigger an acceleration to the upside with the July 26 main top at 3029.50 the next major target.