E-mini S&P 500 Index (ES) Futures Technical Analysis – Minor Trend, Momentum Shifts to Down Under 2789.75
September E-mini S&P 500 Index futures are trading lower early in the session on Friday. The market is following through to the downside after closing lower the previous session. Today’s early price action made 2818.25 a new main top.
At 0646 GMT, September E-mini S&P 500 Index futures are trading at 2802.00, down $3.25 or -0.12%.
Your capital is at risk
The index is also trading below the March 13 main top at 2814.00, suggesting that the surge to 2818.25 on Wednesday may have been fueled by short-covering or buy stops rather than new buying.
The index is also trading below last week’s close at 2803.25, which puts the index in a position to post a potentially bearish weekly closing price reversal top.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 2818.25 will signal a resumption of the uptrend.
The minor trend is also up. A trade through 2789.75 will change the minor trend to down. This will also shift momentum to the downside. Another minor bottom comes in at 2765.75.
The minor range is 2789.75 to 2818.25. Its 50% level or pivot is 2804.00.
A major long-term retracement zone at 2755.25 to 2713.75 is support.
The main range is 2693.25 to 2818.25. Its retracement zone is 2755.75 to 2741.00.
The combination of the two retracement zones identifies 2755.75 to 2755.25 as the best downside target. Since the main trend is up, buyers are likely to show up on a test of this area.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the September E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to the short-term pivot at 2804.00.
A sustained move under 2804.00 will indicate the presence of sellers. If this generates enough downside momentum, the selling could extend into 2789.75. Look for an acceleration to the downside if this minor bottom is broken with the next targets coming in at 2765.75 and 2755.25.
A sustained move over 2804.00 will signal the presence of buyers. This could trigger a retest of this week’s high at 2818.25. This is a potential trigger point for an acceleration to the upside.