E-mini S&P 500 Index (ES) Futures Technical Analysis – Could Straddle 4393.50 Pivot Looking for Direction

September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The catalysts behind the selling pressure are disappointing earnings from General Motors and a weaker-than-expected private sector jobs report from ADP Corp.

At 12:59 GMT, September E-mini S&P 500 Index futures are trading 4400.75, down 14.25 or -0.32%.

According to CNBC, shares of General Motors fell about 3% in premarket trading, weighing on the broader market, after the automaker missed earnings expectations for the second quarter. The automaker did raise its guidance for a key profit metric for the rest of the year.

The ADP private payroll survey showed a gain of 330,000 jobs in July, well short of the consensus estimate of 653,000. The report comes ahead of the Labor Department’s official jobs report, which will be released on Friday, CNBC said.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4422.50 will signal a resumption of the uptrend. A move through 4224.00 will change the main trend to down.

The minor trend is also up. A trade through 4364.75 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 4364.75 to 4422.50. The index is currently trading on the strong side of its pivot at 4393.50.

The short-term range is 4224.00 to 4422.50. If the minor trend changes to down then its retracement zone at 4323.25 to 4299.75 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to 4393.50.

Bullish Scenario

A sustained move over 4393.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 4422.50.

Bearish Scenario

A sustained move under 4393.50 will signal the presence of sellers. If this move is able to generate enough downside momentum then look for the selling to possibly extend into the minor bottom at 4364.75.

Taking out 4364.75 will change the minor trend and momentum to down. If the selling volume were strong enough, this would trigger a steep break into the short-term retracement zone at 4323.25 to 4299.75.