E-mini S&P 500 Index (ES) Futures Technical Analysis – September 20, 2018 Forecast
December E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The rally is being driven by increased demand for higher risk assets. The catalyst is an easing of concerns over the trade dispute between the United States and China. Rising U.S. Treasury yields are also helping to drive up bank stocks.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out the recent top at 2921.75. The new main bottom is 2883.50. A trade through this bottom will change the main trend to down.
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There is no upside objective at this time. However, traders should watch for a closing price reversal top signal due to the prolonged move up in terms of price and time.
Daily Technical Forecast
Based on the early price action, the direction of the December E-mini S&P 500 Index futures contract today is likely to be determined by trader reaction to a steep uptrending Gann angle at 2915.50.
A sustained move over 2915.50 will indicate the presence of buyers.
A failure to hold 2915.50 will signal the return of sellers, or the lack of buyers. If this move creates enough downside momentum, we could see a plunge into a pair of uptrending Gann angles at 2907.00 and 2905.50. Since the main trend is up, buyers are likely to show up on a test of these angles so don’t be surprised by a technical bounce.
If 2905.50 fails as support then look for the selling to extend into the next Gann angle target at 2899.50.