E-mini S&P 500 Index (ES) Futures Technical Analysis – Sustained Move Under 2967.50 Could Trigger Steep Break

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Hope of a trade deal between the United States and China has been supporting the index for about 10 sessions, but problems in the technology sector started to weigh on prices on Monday and this is carrying over into today’s session. This is giving investors an excuse to book profits.

At 11:52 GMT, September E-mini S&P 500 Index futures are at 2972.25, down 6.00 or -0.20%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but Monday’s closing price reversal top may be signaling a shift in momentum to the downside.

A trade through 2991.50 will negate the closing price reversal top and signal a resumption of the uptrend. A trade through 2969.50 earlier today confirmed the closing price reversal top. It seller continue to press the index lower then look for a possible 2 to 3 day correction.

The minor trend is also up. A trade through 2889.00 will change the minor trend to down. This will confirm the shift in momentum.

The short-term range is 3029.50 to 2775.75. Its retracement zone at 2932.50 to 2902.50 is the next potential downside target.

Daily Technical Forecast

Based on the early price action and the current price at 2972.25, the direction of the September E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to an uptrending Gann angle at 2970.25 and a downtrending Gann angle at 2967.50.

Bullish Scenario

A sustained move over 2970.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of 2991.50. Taking out this angle could drive the index into a downtrending Gann angle at 2998.50. This is the last potential resistance angle before the 3029.50 all-time high.

Bearish Scenario

A sustained move under 2967.50 will signal the presence of sellers. The daily chart is wide open under this angle so don’t be surprised by an acceleration to the downside with 2932.50 the next major target.