E-mini S&P 500 Index (ES) Futures Technical Analysis – Dip Buyers Eyeing 4316.00 – 4294.25 Support Zone
September E-mini S&P 500 Index futures rallied for the fourth straight session on Friday, extending a surge that pushed all three major U.S. stock indexes to record closing highs as upbeat earnings and signs of economic revival fueled investor risk appetite.
Investors now look toward this week’s Federal Reserve two-day monetary policy meeting and a series of high profile earnings reports for near-term direction.
On Friday, September E-mini S&P 500 Index futures settled at 4403.00, up 43.50 or +0.99%.
The Fed’s statement will be parsed for clues regarding the timeframe for tightening its accommodative policies, although Chairman Jerome Powell has repeatedly said the economy still needs the central bank’s full support.
In other news, analysts now expect aggregate year-on-year S&P 500 earnings growth of 78.1% for the April to June period, a sizeable increase from the 54% annual growth seen at the beginning of the quarter.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 4408.25 will reaffirm the uptrend. A move through 4224.00 will change the main trend to down.
The minor range is 4224.00 to 4408.25. Its retracement zone at 4316.00 to 4294.25 is the first downside target. This is followed by retracement zones at 4267.50 to 4234.25 and 4214.00 to 4168.25.
Since the main trend is up, all of the retracement zones are support. They will also move up as the market moves through 4408.25.
Daily Swing Chart Technical Forecast
The direction of the September E-mini S&P 500 Index early in the session on Monday is likely to be determined by trader reaction to 4359.50.
A sustained move over 4359.50 will indicate the presence of buyers. Taking out 4408.25 will indicate the buying is getting stronger. This could trigger an acceleration to the upside since there is no major resistance.
A sustained move under 4359.50 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 first pivot at 4316.00 to 4294.25. Watch for buyers on the first test of this area.