September E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The rally is being driven by the hope of a trade deal between the United States and China after U.S. President Donald Trump and Chinese President Xi Jinping agreed to restart trade negotiations following a nearly two-month stalemate.
At 13:13 GMT, the September E-mini S&P 500 Index is trading 2978.75, up 34.75 or 1.18%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out the previous main top at 2969.25. There is no upside target on the swing chart at this time. The main trend changes to down on a trade through 2914.50.
Daily Technical Forecast
Based on the early price action and the current price at 2978.75, support is a pair of uptrending Gann angles at 2967.50 and 2962.50. Holding above these angles will help sustain the upside bias.
The key angle to watch is 2962.50. This angle is a potential trigger point for an acceleration to the downside with the next support angle coming in at 2938.50.
Today is all about momentum. Traders gapped the market on the opening and have so far held the gap. The question is whether U.S. investors decide to chase the market higher or play for a pullback into support.
One clue could be trader reaction to the former top at 2969.25. Falling back under this level will be a sign of weakness. It could also be an indication that the rally through this level was driven by buy stops rather than aggressive buying.