E-mini S&P 500 Index (ES) Futures Technical Analysis – Bulls Take Breather as They Await Positive NewsThe direction of the September E-mini S&P 500 Index into the close is likely to be determined by trader reaction to 3288.50.
September E-mini S&P 500 Index futures are trading flat at the mid-session as investors grapple with several issues including simmering U.S.-China relations as President Trump moves to force China-owned TikTok into a sale of its U.S. operations, and investors await a fresh fiscal stimulus package from the government.
At 17:04 GMT, September E-mini S&P 500 Index futures are trading 3286.25, down 2.25 or -0.07%.
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Shares of Microsoft, the key player in the deal to buy TikTok were lower on Tuesday after surging more than 5% on Monday as the company confirmed it was pursuing a deal to buy the company.
The S&P 500 closed Monday within 3% of its all-time high, powered over the past four months by a stimulus-led rebound and a rally in tech-related stocks including Apple Inc, Netflix Inc and Amazon.com Inc.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today, but not by much, when buyers took out Monday’s high at 3295.50. A trade through 3195.00 will change the main trend to down.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the September E-mini S&P 500 Index into the close is likely to be determined by trader reaction to 3288.50.
A sustained move over 3288.50 will indicate the presence of buyers. If this move continues to generate enough upside momentum then look for an eventual test of 3396.50 over the near-term.
A sustained move under 3288.50 will signal the presence of sellers. If this move creates enough intraday momentum then look for the selling to possibly extend into the minor 50% level at 3246.25. We could see a technical bounce on the first test of this level, but if it fails then look for the selling to possibly extend into the main bottom at 3195.00.
A test of 3195.00 will be decision time for the bulls because the trend will change to down if this bottom fails as support.
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