E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – August 27, 2019 Forecast

September E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Tuesday. A minor shift in investor sentiment following an easing of trade dispute tensions on Monday is helping to underpin the index. Earlier today, the market received additional support after China announced measures aimed at boosting consumption, including potentially removing car-buying restrictions.

At 13:55 GMT, September E-mini S&P 500 Index futures are trading 2892.75, up 9.75 or +0.33%.

Despite the early strength, investors are still a little tentative about playing the long side of the market as evidenced by Monday’s below average volume.

E-mini S&P 500 Index
Daily September E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2939.75 will change the main trend to up. A move through 2944.25 will reaffirm the change in trend.

Taking out 2810.25 will signal a resumption of the downtrend with the main bottom at 2775.75 the next downside target.

The minor trend is also down. However, a new minor bottom at 2810.25 was formed earlier today.

The main range is 2732.25 to 3029.50. Its retracement zone at 2881.00 to 2845.75 is controlling the near-term direction of the index. It’s also support.

The short-term range is 3029.50 to 2775.75. Its retracement zone at 2902.75 to 2932.50 is potential resistance. Overtaking this zone will put the index in a strong position.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2892.75, the direction of the September E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the main 50% level at 2881.00.

Bullish Scenario

A sustained move over 2881.00 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the short-term 50% level at 2902.75. This is a potential trigger point for an acceleration into the short-term Fibonacci level at 2932.50. This is followed by a pair of tops at 2939.75 and 2944.25.

The trigger point for an acceleration to the upside is probably 2944.25. There is no meaningful resistance between this top and the July 26 main top at 3029.50.

Bearish Scenario

A sustained move under 2881.00 will signal the presence of sellers. This could trigger an acceleration into the main Fibonacci level at 2845.75. If this fails then look for sellers to try to press the index into 2810.25 then 2775.75.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.