E-mini S&P 500 Index (ES) Futures Technical Analysis – Trying to Form Potentially Bullish Secondary Higher Bottom

September E-mini S&P 500 Index futures are trading higher at the mid-session on Thursday after posting a volatile, two-sided trade during the pre-market session. After initially trading higher, the index turned lower after China said it has to retaliate against the new tariffs from the United States. Prices rebounded as retail giant Walmart’s earnings and strong retail sales figures led investors to believe the U.S. consumer could help the country avoid a recession.

At 16:24 GMT, September E-mini S&P 500 Index futures are trading 2850.25, up 9.50 or +0.33%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2944.25 will change the main trend to up. A move through 2775.75 will signal a resumption of the downtrend.

The main range is 2732.25 to 3029.50. Its retracement zone at 2881.00 to 2845.75 is currently being tested. This zone is controlling the near-term direction of the index.

The intermediate range is 3029.50 to 2775.75. Its retracement zone at 2902.75 to 2932.50 is the next potential upside target.

Daily Technical Forecast

Based on the early price action, and the current price at 2850.25, the direction of the September E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the long-term Fibonacci level at 2845.75.

Bullish Scenario

A sustained move over 2845.75 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the main 50 percent level at 2881.00. Overcoming this level could send the index even higher with potential targets the intermediate 50 percent level at 2902.75 and a downtrending Gann angle at 2917.50.

Bearish Scenario

A sustained move under 2845.75 will signal the presence of sellers. The first downside target is an uptrending Gann angle at 2836.25. If this angle fails then look for the selling to possibly extend into the intraday low at 2817.75.

Crossing to the weak side of the steep downtrending Gann angle at 2805.50 will put the index in a weak position with the next targets an uptrending Gann angle at 2784.25 and a main bottom at 2775.75. This is the last potential support before the 2732.25 main bottom.