Yahoo Finance E-mini S&P 500 Index (ES) Futures Technical Analysis – September 24, 2018 Forecast
December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Investors are lightening up on the long side of the market after China cancelled trade talks on Friday. Traders are trying to figure out if this move represents an escalation of the trade dispute between the U.S. and China. Some traders are saying investors shouldn’t read into the move since the meetings were rescheduled for some time after the November U.S. mid-term elections.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum may have shifted to the downside with the formation of the closing price reversal top on Friday.
A trade through 2947.00 will negate the reversal top and signal a resumption of the uptrend. A move through 2923.25 will confirm the closing price reversal top. This could lead to the start of a 2 to 3 day correction. The main trend will change to down on a trade through 2883.50.
The short-term range is 2883.50 to 2947.00. Its retracement zone at 2915.25 to 2908.00 is the first downside target. Since the main trend is up, buyers are likely to show up on a test of this zone.
Daily Technical Forecast
Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to Friday’s low at 2923.25.
Holding above 2923.25 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at 2947.00. Overtaking the steep uptrending Gann angle at 2947.50 will put the index in an extremely bullish position.
Taking out 2923.25 will signal the presence of sellers. This will also confirm the closing price reversal top.
The first downside targets are a cluster of numbers at 2915.50, 2915.25, 2915.00 and 2913.50. Since the main trend is up, look for buyers to show up on a test of 2915.50 to 2913.50.
Look for a potential acceleration to the downside if 2913.50 fails as support. This could trigger a spike into 2907.75. The daily chart starts to open up to the downside under this level with 2899.50 the next potential downside target.
This article was originally posted on FX Empire
