E-mini S&P 500 Index (ES) Futures Technical Analysis – August 30, 2018 Forecast

September E-mini S&P 500 Index futures opened lower on Thursday as buyers took a breather after posting a week of record highs. Fundamentally, investors are concerned about trade negotiations with Canada. Volume is expected to be light as investors prepare for the long U.S. holiday week-end.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2917.50 will signal a resumption of the uptrend.

The minor trend is also up. A trade through yesterday’s low at 2897.50 will make 2917.50 a new minor top. This will be an early sign of weakness.

Due to the prolonged move up in terms of price and time, investors should also watch for a potentially bearish closing price reversal top.

The minor range is 2846.25 to 2917.50. If there is a correction then we could see a pullback into its retracement zone at 2881.75 to 2873.50.

Daily Technical Forecast

Based on the early trade and the uptrend, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to yesterday’s high at 2917.50.

A sustained move over 2917.50 will signal the presence of buyers. There is no resistance.

A sustained move under 2917.50 will indicate the presence of sellers. If the pressure is strong enough to take out 2897.50 then 2917.50 will become a minor top. If the selling pressure continues then look for a break into the steep uptrending Gann angle at 2891.00.

Look for a technical bounce on the first test of 2891.00, but if it fails then look for the selling to extend into the short-term retracement zone at 2881.75 to 2873.50.

The third scenario is the closing price reversal top. This will start to form when buyers take out 2917.50 then turn lower for the session. This will not indicate a change in trend, but it will indicate the selling is greater than the buying at current price levels. This could start a 2 to 3 day correction.