E-mini S&P 500 Index

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

September E-mini S&P 500 Index futures are trading mixed shortly before the cash market opening. Investors seem to be taking a cautious approach to today’s trade.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 2849.50 will change the main trend to up. A move through 2791.00 will signal a resumption of the downtrend.

The minor trend is up. This is helping to generate the upside momentum.

The short-term range is 2849.50 to 2791.00. Its 50% level or pivot at 2820.25 is the nearest support.

The main range is 2693.25 to 2849.50. Its retracement zone at 2771.25 to 2753.00 is the primary downside target and major support.

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

Daily Technical Forecast

Based on the early trade, the price action is being controlled by a series of downtrending Gann angles at 2845.25, 2841.25 and 2833.25.

The angle at 2845.25 is the last potential resistance angle before the 2849.50 main top. The angle at 2833.25 is a possible trigger point for an acceleration to the downside. The angle at 2841.25 is acting like a pivot.

A sustained move over 2841.25 will indicate the presence of buyers. If this generates enough upside momentum, we could see a fast move into 2845.25 then 2849.50. A move through the latter will change the main trend to up. Whether this fuels an acceleration to the upside will be determined by the size of the buying volume. A breakout on weak volume is doomed to fail.

A sustained move under 2841.25 will signal the presence of sellers. This could spike the market into the downtrending Gann angle at 2833.25.

Taking out 2833.25 could trigger an acceleration into the pivot at 2820.25. This is the trigger point for an even steeper sell-off with the main target a long-term uptrending Gann angle at 2797.25. This angle stopped the selling last week at 2791.00. If it fails then look for a break into 2771.25.

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.