S&P 500

E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3107.25, Weakens Under 3072.00

September E-mini S&P 500 Index futures are trading higher on Monday shortly after the opening as investors shrugged off fears of a resurgence in coronavirus infections. Earlier in the session, the market was down on worries of another setback to business activity.

Shares of airlines, one of the worst-hit sectors by the lockdowns, tumbled with United Airlines, JetBlue Airlines and Alaska Air Group down between 2.1% and 4% in premarket trading.

At 15:10 GMT, September E-mini S&P 500 Index futures are trading 3083.25, up 23.75 or +0.78%.

American Airlines Group Inc. tumbled 9% as it planned to secure $3.5 billion in new financing by selling shares and convertible senior notes to boost liquidity.

Daily September E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 2896.25 will change the main trend to down. A move through 3220.50 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. A trade through 3156.25 will change the minor trend to up.

The minor range is 2923.75 to 3156.25. Its 50% level or pivot at 3040.00 is acting like support.

The short-term range is 3220.50 to 2923.75. Its retracement zone at 3072.25 to 3107.25 is potential resistance. This zone is currently being tested.

On the downside, the retracement zone at 2986.00 to 2930.50 is the major support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 3083.25, the direction of the September E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to 3072.25.

Bullish Scenario

A sustained move over 3072.25 will signal the presence of buyers. If this creates enough upside momentum then look for a surge into 3107.25. Overtaking this level will indicate the buying is getting stronger with 3156.25 the next key target.

Bearish Scenario

A sustained move under 3072.25 will indicate the presence of sellers. This could lead to a steep decline with 3040.00 the next target. This level is a potential trigger point for an acceleration to the downside with the major target coming in at 2986.00.

For a look at all of today’s economic events, check out our economic calendar.

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.