E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – Buyers Will Face Challenge at 3072.25

September E-mini S&P 500 Index futures are trading higher late in the session on Monday after recovering from earlier weakness. Investors shrugged off the latest surge in coronavirus cases, while shifting their focus to bullish news from Boeing.

Investors continued to bet on select stocks on hopes most state economies will continue to reopen even as some hotspots pop up. Apple was among the biggest contributors of gains on the Dow, climbing 1.8%. Facebook, meanwhile, traded 1.7% higher to recover from an earlier decline.

At 19:33 GMT, September E-mini S&P 500 Index futures are trading 3030.25, up 23.25 or +0.77%.

Shares of Boeing rose 11.3% as certification flights for the Boeing 737 Max began Monday. The test is seen by investors as a critical step in Boeing’s worst-ever corporate crisis, which began in March 2019 after two crashes in five months killed 346 people.

Daily September E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 3145.75 will signal a resumption of the uptrend. The main trend will change to down on a move through 2923.75.

The minor trend is down. This is controlling the momentum. A trade through 3082.00 will change the minor trend to up.

The formation of the secondary lower top at 3145.75 is another sign of weak momentum.

The minor range is 3220.50 to 2923.75. Its 50% level or pivot at 3072.25 is potential resistance.

The short-term range is 2751.50 to 3220.50. Its 50% level at 2986.00 is support.

The major support zone is 2926.25 to 2781.00.

Short-Term Outlook

Monday’s price action indicates the importance of the 50% level at 2986.00. If this level continues to hold as support then don’t be surprised by a rally into the 50% level at 3072.00 and the downtrending Gann angle at 3100.50.

A failure to hold 2986.00 will signal the presence of sellers. This could trigger a further decline into a support cluster at 2926.25 to 2923.75.

The main bottom at 2923.75 is the trigger point for an acceleration to the downside.

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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.