E-mini S&P 500 Index (ES) Futures Technical Analysis – Bank Stocks Lead Rally Ahead of EarningsThe direction of the September E-mini S&P 500 Index into the close on Friday is likely to be determined by trader reaction to 3144.50.
September E-mini S&P 500 Index futures are trading higher at the mid-session on Friday after overcoming earlier weakness. The early price action was choppy until a surge in financial stocks drove the broad-based index sharply higher. Gains may have been limited by worries over the jump in coronavirus cases.
At 16:50 GMT, September E-mini S&P 500 Index futures are trading 3154.50, up 13.50 or +0.435.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 3184.00 will signal a resumption of the uptrend after a two-day setback.
The market may still be feeling a slight shift in momentum to the downside following Tuesday’s potentially bearish closing price reversal top, but that chart pattern will also be negated by a trade through 3184.00.
The minor trend is down. A trade through 3105.25 will indicate the selling is getting stronger. A move through 3170.75 will change the minor trend to up.
The minor range is 3184.00 to 3105.25. Its 50% level or pivot at 3144.50 is controlling the direction on Friday.
The short-term range is 3220.50 to 2923.75. Its retracement zone at 3107.00 to 3072.00 is support.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at 3154.50, the direction of the September E-mini S&P 500 Index into the close on Friday is likely to be determined by trader reaction to 3144.50.
A sustained move over 3144.50 will indicate the presence of buyers. The next target is the minor top at 3170.75. Overtaking this level could lead to a retest of the main top at 3184.00.
A sustained move under 3144.50 will indicate the presence of sellers. This could trigger a pullback into the Fibonacci level at 3107.00, followed by the minor bottom at 3105.25. The latter is a potential trigger point for an acceleration into the 50% level at 3072.00.