E-mini S&P 500 Index (ES) Futures Technical Analysis – August 31, 2018 Forecast

September E-mini S&P 500 Index futures are under some pressure shortly before the regular session opening. Profit-taking and position-squaring ahead of the long U.S. holiday week-end are a couple of catalysts driving the price action. Traders are also concerned about trade with Canada and the NAFTA deal in focus as well as issues with the World Trade Organization and additional tariffs on China.

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. A move through 2895.50 will make 2917.50 a new main top. The nearest main bottom is at 2803.00 so the index is in no danger of changing the main trend to down.

The minor trend is also up. The minor trend will change to down on a trade through 2846.25.

The minor range is 2846.25 to 2917.50. Its retracement zone at 2881.75 to 2873.50 is the first downside target.

The main range is 2803.00 to 2917.50. Its retracement zone at 2860.25 to 2846.75 is the next downside target.

Since the main trend is up, buyers could show up on the first test of the retracement zones.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index today is likely to be determined by trader reaction to the steep uptrending Gann angle at 2899.00.

A sustained move over 2899.00 will indicate the presence of buyers. If this move creates enough upside momentum then we could see a retest of this week’s high at 2917.50. Low volume could be an issue, however, in reaching this objective.

A sustained move under 2899.00 will signal the presence of sellers. This could trigger an acceleration to the downside with the 50% level at 2881.75 the first downside target. This is followed by the Fibonacci level at 2873.50. This is another trigger point for an acceleration into at least 2860.25.