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James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

September E-mini S&P Index futures are expected to open higher based on the pre-market trade. The catalysts behind the rally are increased demand for risky assets and weaker than expected U.S. consumer inflation data.

Demand for risk is being fueled by optimism over an invitation extended by the U.S. to China to resume trade talks. The weaker than expected consumer inflation report could slow down the pace of future Fed rate hikes.

Daily September E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2865.00 will change the main trend to down. A move through 2917.50 will signal a resumption of the uptrend.

The short-term range is 2917.50 to 2865.00. Its retracement zone at 2891.25 to 2987.50 is controlling the direction of the index. Trading on the strong side of this zone will give the index an upside bias.

The main range is 2803.00 to 2917.50. If the main trend changes to down then its retracement zone at 2860.25 to 2846.75 will become the primary downside target.


Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index will be determined by trader reaction to the price cluster at 2897.50.

A sustained move over 2897.50 will indicate the presence of buyers. This could trigger an acceleration to the upside with the next target angle coming in at 2907.50. We could see a technical bounce on the first test of this angle, but if it’s overtaken then look for the buying to extend into the next downtrending Gann angle at 2912.50. This is the last potential resistance angle before the 2917.50 main top.

A sustained move under 2897.50 will signal the presence of sellers. This could trigger a break into the 50% level at 2891.25, followed by a long-term uptrending Gann angle at 2883.00.

Look for a technical bounce on the first test of 2883.00. This angle has been guiding the index higher for 20 sessions. If it fails as support then look for a potential acceleration to the downside. The daily chart indicates there is plenty of room to the downside with 2865.00 and 2860.25 the major targets.

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