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E-mini S&P 500 Index (ES) Futures Technical Analysis – Big Decision for Bears at 3346.00 to 3342.50

By:
James Hyerczyk
Updated: Sep 8, 2020, 16:05 UTC

The direction of the September E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the 50% level at 3389.25.

E-mini S&P 500 Index

September E-mini S&P 500 Index futures are trading sharply lower shortly after the cash market opening Tuesday. Traders returned from a long U.S. holding weekend with selling on their minds, continuing last week’s steep retreat. A sell-off in several tech heavyweights led the market lower.

Mounting tensions and concerns over a rocky economic rebound are being blamed for triggering the start of the selling as well as just generally overbought conditions.

At 13:30 GMT, September E-mini S&P 500 Index futures are trading 3363.50, down 54.00 or -1.58%.

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 move through the nearest main bottom at 3195.00. A trade through 3587.00 will signal a resumption of the uptrend.

The minor range is 3344.75 to 3587.00. Its retracement zone at 3437.25 to 3466.00 is new resistance.

The first short-term range is 3191.50 to 3587.00. Its retracement zone at 3389.25 to 3342.50 is currently being tested.

The second short-term range is 3105.25 to 3587.00. Its retracement zone at 3346.00 to 3289.25 is the next downside target area.

The two short-term retracement zones create a potential support cluster at 3346.00 to 3342.50. We could see a technical bounce on the first test of this area.

Daily Swing Chart Technical Forecast

Based on the early price action on Tuesday, the direction of the September E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the 50% level at 3389.25.

Bearish Scenario

A sustained move under 3389.25 will indicate the presence of sellers. The first downside target is the potential support cluster at 3346.00 to 3342.50. Watch for a technical bounce on the first test of this area. If 3342.50 fails as support we could see a near-term acceleration into the Fibonacci level at 3289.25.

Bullish Scenario

A sustained move over 3389.25 will signal the presence of buyers. This could create a labored rally with potential upside targets coming in at 3437.25 and 3466.00.

Overtaking 3466.00 could trigger an acceleration to the upside.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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