E-mini S&P 500 Index (ES) Futures Technical Analysis – August 21, 2019 Forecast
September E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The price action suggests investors are going into today’s Fed minutes with an optimistic view that the central bank is going to be willing to do whatever it takes to perk up the economy and prevent a U.S. or global recession.
At 13:06 GMT, September E-mini S&P 500 Index futures are trading 2918.50, up 20.25 or +0.70%.
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Stocks are also being supported by better-than-expected quarterly results from retailers Target and Lowe’s. Target’s shares jumped more than 17% in the premarket trade, and Lowe’s surged more than 12%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher due to the formation of a pair of secondary higher bottoms at 2817.75 and 2775.75.
A trade through 2944.25 will change the main trend to up. A move through 2817.75 will signal a resumption of the downtrend.
The short-term range is 3029.50 to 2775.75. Its retracement zone at 2902.50 to 2932.50 is currently being tested.
The main retracement zone at 2880.75 to 2845.75 is support. It’s also controlling the near-term direction of the index.
Daily Technical Forecast
Based on the early price action, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to the short-term 50% level at 2902.50.
Bullish Scenario
A sustained move over 2902.50 will indicate the presence of buyers. If this creates enough upside momentum then look for a drive into the short-term Fibonacci level at 2932.50.
Taking out 2932.50 will indicate the buying is getting stronger. Taking out 2944.25 will change the main trend to up. Crossing to the strong side of the uptrending Gann angle at 2945.75 will put the index in a bullish position. This could create the upside momentum to take out the downtrending angle at 2957.50. This Gann angle is the trigger point for an acceleration to the upside.
Bearish Scenario
A sustained move under 2932.50 will signal the presence of sellers. This could trigger a break into a support cluster at 2885.50 to 2880.75. Look for a technical bounce on the first test of this area.
The main 50% level at 2880.75 is the trigger point for an acceleration to the downside with the next targets an uptrending Gann angle at 2849.75 and the main Fibonacci level at 2845.75.