E-mini S&P 500 Index (ES) Futures Technical Analysis – August 29, 2019 Forecast

September E-mini S&P 500 Index futures are trading higher on Thursday as we approach the cash market opening after posting a spectacular rebound from early session losses. The catalyst behind the impressive recovery is upbeat comments from Gao Feng, spokesman for China’s Ministry of Commerce.

Gao said that China wants to “collaborate in order to solve this problem with a calm attitude.” The comment eased fears over a global economic slowdown, sending investors out of safe assets like Treasurys and into higher-yielding stocks.

At 13:17 GMT, September E-mini S&P 500 Index futures are at 2915.75, up 26.00 or 0.90%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum shifted to the upside during the overnight trade.

A trade through 2939.75 will change the main trend to up. A move through 2810.25 will signal a resumption of the downtrend.

The minor trend is up. It changed to up on the trade through 2899.50. This led to a shift in momentum to the upside. A trade through 2851.75 will change the minor trend back down.

The main range is 3029.50 to 2775.75. Its retracement zone at 2880.75 to 2845.75 is support. This zone is also controlling the longer-term direction of the index.

The short-term range is 3029.50 to 2775.75. Its retracement zone at 2902.50 to 2932.50 is currently being tested. Crossing to the strong side of this zone will put the index in a bullish position.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2915.75, the direction of the September E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the short-term 50% level at 2902.50.

Bullish Scenario

A sustained move over 2902.50 will indicate the buying is getting stronger. Taking out the short-term Fib at 2932.50, and the main tops at 2939.75 and 2944.25 could trigger an acceleration to the upside. There is no visible resistance until 3029.50.

Bearish Scenario

A sustained move under 2902.50 will signal weaker buying or stronger selling. This could trigger a break into 2880.75. If this fails then look for the selling to extend into 2851.75 then 2845.75.

Taking out 2845.75 will put the index in an extremely weak position.