E-mini S&P 500 Index (ES) Futures Technical Analysis – September 25, 2018 Forecast

December E-mini S&P 500 Index futures are called higher based on the early session trade. The market has already gained back half of its two day loss. Recovering more than this will put the index back in position to challenge last week’s all-time high.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower with the formation of the closing price reversal top on Friday and the subsequent confirmation of the chart pattern on Monday.

A trade through 2947.00 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a move through 2883.50.

The minor trend is also up. A trade through 2917.75 will change the minor trend to down. This will also signal a shift in momentum to the downside.

The short-term range is 2947.00 to 2918.75. Its 50% level or pivot at 2933.00 is currently being tested. Trader reaction to this level should set the tone for the day.

The main range is 2883.50 to 2947.00. Its retracement zone at 2915.25 to 2907.75 is the primary downside target. Since the main trend is up, buyers are likely to come in on the first test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the short-term pivot at 2932.50.

A sustained move over 2932.50 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at the all-time at 2947.00.

A sustained move under 2932.50 will signal the presence of sellers. The first downside target is the uptrending Gann angle at 2923.50. If this Gann angle fails as support then look for a further decline into a pair of uptrending Gann angles at 2919.00 and 2917.50. These angles could also prove to be attractive to buyers.

If 2917.50 fails as support then look for an extension of the break into the retracement zone at 2915.25 to 2907.75.