E-mini S&P 500 Index (ES) Futures Technical Analysis – August 30, 2019 ForecastBased on the early price action and the current price at 2942.50, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to a pair of Gann angles at 2938.25 and 2929.50. This levels are also straddling the short-term retracement zone at 2932.50.
September E-mini S&P 500 Index futures are called higher based on the pre-market trade. The move is being fueled by hope that the trade talks by the United States and China, scheduled to begin next Thursday, will lead to an eventual deal to end the prolonged trade dispute between the two economic powerhouses. Support is also being provided by expectations of another 25-basis point rate cut by the U.S. Federal Reserve in September.
At 12:23 GMT, September E-mini S&P 500 Index futures are trading 2942.50, up 15.75 or +0.54%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out 2939.75. It was reaffirmed on a trade through 2944.25. The main trend will change to down on a move through 2810.25.
The main range is 2732.25 to 3029.50. Its retracement zone at 2880.75 to 2845.75 is controlling the near-term direction of the index. This is the major support.
The short-term range is 3029.50 to 2775.75. Crossing to the strong side of its retracement zone at 2932.50 to 2902.50 is helping to generate an upside bias. This zone is also support.
Daily Technical Forecast
Based on the early price action and the current price at 2942.50, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to a pair of Gann angles at 2938.25 and 2929.50. This levels are also straddling the short-term retracement zone at 2932.50.
A sustained move over 2938.25 will indicate the presence of buyers. Holding above the two former tops at 2939.75 and 2944.25 will indicate the buying is getting stronger. If this is able to generate enough upside momentum then look for the rally to possibly extend into the next downtrending Gann angle at 2979.50.
A failure to hold above 2938.25 and 2932.50 will be the first signs of weakness. Crossing to the weak side of the downtrending Gann angle at 2929.50 will indicate the selling is getting stronger. If this generates enough downside momentum then look for the selling to possibly extend into the short-term 50% level at 2902.50.
If 2902.50 fails then look for a potential drop into a pair of targets at 2880.75 and 2874.25.