E-mini S&P 500 Index (ES) Futures Technical Analysis – September 17, 2018 Forecast

September E-mini S&P 500 Index futures opened slightly lower on Monday as increasing tensions between the United States and China put the potential trade talks in doubt. Investors were waiting for President Trump to announce new tariffs on around $200 billion worth of Chinese goods at any time, now that the public discussion period has passed. China is expected to retaliate.

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 main trend will change to down on a move through 2865.00.

The short-term range is 2865.00 to 2912.25. If the early selling pressure persists, look for a potential break into its retracement zone at 2888.50 to 2883.00.

The main range is 2803.00 to 2917.50. If the 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 the rest of the session is likely to be determined by trader reaction to a downtrending Gann angle at 2905.50.

A sustained move under 2905.50 will indicate the presence of sellers. If this move generates enough downside momentum then look for the selling to extend into the long-term uptrending Gann angle at 2891.00. Since the trend is up, look for a technical bounce on the first test of this angle.

If 2891.00, the downside momentum should carry the index into 2888.50 to 2883.00. The latter is a potential trigger point for an acceleration to the downside with the next target 2865.00.

A sustained move over 2905.50 will signal the presence of buyers. The next upside targets are 2911.50 and 2912.25. Taking out these levels should generate enough upside momentum to challenge the contact high at 2917.50.