E-mini S&P 500 Index (ES) Futures Technical Analysis – September 5, 2019 Forecast

September E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. The initial rally was ignited by the announcement of the resumption of trade talks between the United States and China in early October. The second wave of buying was fueled by better-than-expected private sector jobs data from ADP, which could be an indication that Friday’s U.S. Non-Farm Payrolls report will be stronger than previously expected.

At 13:39 GMT, September E-mini S&P 500 Index futures are trading 2969.00, up 30.50 or +1.02%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up last Friday. Today’s move through 2946.50 reaffirmed the uptrend. A move through 2810.25 will change the main trend to down.

Today is also the seventh day up from the last main bottom so there is the possibility of a closing price reversal top.

The minor trend is also up. A move through 2889.00 will change the minor trend to down. This will also shift momentum to the downside.

The index is also trading on the strong side of a short-term retracement zone at 2932.50 to 2902.50, making this area new support. The major support remains 2880.75 to 2845.00.

Daily Technical Forecast

Based on the early price action and the current price at 2969.00, the direction of the September E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 2973.50.

Bullish Scenario

A sustained move over 2973.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the next downtrending Gann angle at 3001.50. This is the last potential resistance angle before the 3029.50 main top.

Bearish Scenario

A sustained move under 2973.50 will signal the presence of sellers. If this move generates enough downside momentum then we could see a pullback into the short-term Fibonacci level at 2932.50, followed by an uptrending Gann angle at 2922.25.