E-mini S&P 500 Index (ES) Futures Technical Analysis – Bearish Under 2713.75, Bullish Over 2755.25

September E-mini S&P 500 Index futures finished the week lower despite a slight increase in demand for risk late in the week. The market was primarily pressured last week by concerns over the developing trade war between the United States and its trading partners, China and the European Union.

For the week, the index settled at 2721.50, down 38.00 or -1.38%. At the end of the second quarter, the Nearby E-mini S&P 500 Index is up 36.75, or 1.37%.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 2796.00 will signal a resumption of the uptrend. A trade through 2595.75 will change the main trend to down.

The minor trend is also up. A trade through 2679.25 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 2889.00 to 2538.75. Its retracement zone is 2713.75 to 2755.25. This zone is controlling the longer-term direction of the index.

Weekly Technical Forecast

Based on last week’s trade and the close at 2721.50, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to the 50% level at 2713.75.

A sustained move over 2713.75 will indicate the presence of buyers. Overcoming the uptrending Gann angle at 2739.75 will indicate the buying is getting stronger. This could create the upside momentum needed to challenge a downtrending Gann angle at 2748.00 and the Fibonacci level at 2755.25.

Overcoming 2755.25 will put the index in a strong position, but the next rally will be labored because of potential Gann angle resistance at 2772.00 and 2784.00. The uptrend will be reaffirmed on a move through 2796.00.

A sustained move under 2713.75 will signal the presence of sellers. This could trigger a quick break into the uptrending Gann angle at 2706.75.

The angle at 2706.75 is the trigger point for an acceleration to the downside. The first target is the minor bottom at 2679.25. This is followed by an uptrending Gann angle at 2667.75.

The strongest support area is a pair of uptrending Gann angles at 2631.75 and 2622.75.

The Gann angles aren’t as important as the retracement zone and especially the 50% level at 2713.75. Trader reaction to this level will tell us if the buyers or sellers are in control.