E-mini S&P 500 Index (ES) Futures Technical Analysis – September 6, 2018 Forecast

September E-mini S&P 500 Index futures are trading nearly flat shortly after the cash market opening. The index is also trading inside yesterday’s range which suggests investor indecision and impending volatility. The major players could be on the sidelines ahead of the possible announcement of additional tariffs on China later today. Traders could also be squaring positions in front of Friday’s U.S. Non-Farm Payrolls report.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 2917.50 will signal a resumption of the uptrend. The main trend changes to down on a move through 2803.00.

The minor trend is down. This is controlling the downside momentum. A trade through 2912.50 will change the minor trend to up. A move through 2877.50 will indicate the selling pressure is getting stronger.

The short-term range is 2846.25 to 2917.50. Its retracement zone at 2881.75 to 2873.50 is the first downside target. This zone provided support on Wednesday when the index recovered from a test of 2877.50.

The main range is 2803.00 to 2817.50. Its retracement zone at 2860.25 to 2846.75 is the next downside target area. Since the main trend is up, buyers could come in on a test of this zone.

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 the 50% level at 2881.75.

A sustained move over 2881.75 will indicate the presence of buyers. If this generates enough upside momentum then we could see a move into a downtrending Gann angle at 2897.50. Look for a technical bounce on the first test of this angle.

Overtaking 2897.50, however, could trigger an acceleration into the next two downtrending Gann angles at 2907.50 and 2912.50. The latter 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 lead to a test of the Fibonacci level at 2873.50. If this level fails then look for the selling to extend into the uptrending Gann angle at 2863.00, followed closely by a 50% level at 2860.25.

Volume appears to be light so be careful buying strength and selling weakness.