Since 2018, markets have marked out the 2900-ish range as the top bound for the ES1. The fundamental reasons are aplenty with the US economy in a late stage expansion boosted by a lot of leverage and multiple expansion. The top range is readily apparent with the triple top highlighted in red.
Within the latest top, the price action is potentially developing a head & shoulder formation with a neckline at 2800 which is well supported by strong SSR levels. With the US-China trade war intensifying and S&P500 companies deriving c.50% of their profits from overseas market, it is not immediately apparent what will save the S&P500 from the currently developing earnings recession and from breaking the neckline of the potential head & shoulder formation.
Immediate price objective the potential head & should formation would be c.2640, c.-7% downside risk.