E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – Weaker After Apple Recloses Some Stores

September E-mini  S&P 500 Index futures are trading mixed on Friday after giving up earlier gains. Futures are trying to hold on to gains but the cash market is trading lower. This divergence indicates investor uncertainty and when traders become uncertain, they tend to sell.

The catalyst behind the selling pressure is the news that Apple said it will reclose some stores given recent spikes in coronavirus cases. The tech giant said a total of 11 stores will be closed in Florida, Arizona, South Carolina and North Carolina.

Apple shares dropped more than 0.7% on the news. Earlier in the day, they hit an all-time high.

At 17:23 GMT, September E-mini  S&P 500 Index futures are trading 3092.75, down  5.25 or -0.17%.

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. The main trend will change to down on a trade through 2896.25. A move through 3220.50 will signal a resumption of the uptrend.

The minor trend is down. This is creating the downside momentum.

The short-term range is 3220.50 to 2923.75. Its retracement zone at 3072.00 to 3107.25 is currently being tested. Trader reaction to this zone will determine the near-term direction of the market.

The minor range is 2923.75 to 3156.25. Its 50% level at 3040.00 is the next potential support level.

The main retracement zone target is 2986.00 to 2930.50.

Short-Term Outlook

A potentially bearish secondary lower top may be forming at 3156.25. This chart pattern could attract enough sellers to trigger an eventual change in trend.

Essentially, we’re looking for the upside bias to re-establish itself on a move through 3107.25, and for a downside bias to begin on a move through 3072.00.

The big test for buyers will be following a break into 2986.00 to 2930.50. This zone has to hold or the market could collapse as much as 200 points over the near-term.

Closing lower for the week will also be a bearish sign. Traders fear that Apple’s closing of stores in several states that have seen spikes in new coronavirus cases could open the door to another round of lockdowns and restrictions.

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.