E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 3072.00 Sets the Tone

September E-mini S&P 500 Index futures are expected to open lower on Wednesday based on the pre-market trade. The benchmark index is being pressured as investors shunned risky bets with many U.S. states scrambling to fight a spike in coronavirus infections.

According to Reuters, Washington State made face masks mandatory in public places, while many other U.S. states saw record cases, including Arizona and Texas, where restrictions meant to slow its spread were lifted early.

Meanwhile, the top U.S. infectious disease official said the next two weeks could be critical in containing the outbreak.

At 13:14 GMT, September E-mini S&P 500 Index futures are trading 3098.50, down 20.00 or -0.64%.

Ahead of the opening, U.S. airlines, resorts and cruise operators, among the worst hit by the pandemic’s fallout, declined with United Airlines Holdings Inc., Royal Caribbean Cruises Ltd, Carnival Corp., down between 3.1% and 4.9% in premarket trading.

Shares of U.S. lenders, which tend to outperform when the outlook for the economy improves, also slipped. Bank of America Corp., Citigroup Inc. and Goldman Sachs fell between 1.5% and 2.6%.

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 3220.50 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 downside momentum. The minor trend will change to up on a trade through 3156.25.

The minor range is 3220.50 to 2923.75. Its pivot at 3072.00 is controlling the direction today.

The short-term range is 2751.50 to 3220.50. Its 50% level at 2986.00 is another potential downside target.

The major support zone is 2926.25 to 2781.00. This zone is controlling the longer-term direction of the index.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 3098.50, the direction of the September E-mini S&P 500 Index the rest of the session on Wednesday is likely to be determined by trader reaction to 3072.00.

Bullish Scenario

A sustained move over 3072.00 will indicate the presence of buyers. If this can create enough upside momentum then look for a rally into minor points at 3145.75 and 3156.25. The latter is the trigger point for an acceleration into 3220.50.

Bearish Scenario

A sustained move under 3072.00 will signal the presence of sellers. This could trigger a plunge into the minor bottom at 3027.25, followed by the 50% level at 2986.00.

If 2986.00 fails as support then look for the selling to possibly extend into the support cluster at 2926.25 to 2923.75.

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.