E-mini S&P 500 Index (ES) Futures Technical Analysis – September 18, 2018 Forecast

September E-mini S&P 500 Index futures are called higher based on the pre-market trade. The market is recovering from early session weakness that was fueled by the announcement of new tariffs on China by the U.S. The price action suggests the news may have already been priced into the market.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2912.25 will signal a resumption of the uptrend. The main trend will change to down on a move through 2865.00.

The minor trend is also up. A trade through 2867.25 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 2865.00 to 2912.25. The market straddled its retracement zone at 2888.50 to 2883.00 earlier in the session. Trader reaction to this zone is likely to determine the near-term direction of the market.

The main range is 2803.00 to 2917.50. If the trend changes to down then look for a move into its retracement zone at 2860.25 to 2846.75.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to a pair of uptrending Gann angles at 2895.00 and 2893.00.

A sustained move over 2895.00 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into the nearest downtrending Gann angle at 2904.50. Look for a technical bounce on the first test of this angle. Overtaking it, could trigger an extension of the rally into a potential resistance cluster at 2911.00 to 2912.25. Look for sellers on the first test. Overcoming 2912.25 could drive the market into the main top at 2917.50.

A sustained move under 2893.00 will signal the presence of sellers. This could trigger retests of the 50% level at 2888.50, or the Fib level at 2883.00 or the uptrending Gann angle at 2879.00.

Look out to the downside if 2878.50 fails as support. The daily chart indicates there is plenty of room to the downside with the nearest targets 2867.25, 2865.00 and 2860.25.