September E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The market is being pressured by diminished hopes of a Fed rate hike at the end of July because of a jump in Non-Farm Payrolls. Stocks had been supported recently by the hopes of a 25 to 50 basis point rate hike by central bank policymakers due to a weakening global economy.

At 13:21 GMT, September E-mini S&P 500 Index futures are trading 2984.00, down 16.25 or -0.56%.

The jump in payrolls was accompanied by lower than expected Average Hourly Earnings and a slight rise in the Unemployment Rate. The data doesn’t completely eliminate the chances of a rate cut, but it does raise concerns for the bulls that the Fed may continue to take a “wait and see” approach.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3001.50 will signal a resumption of the uptrend. The main trend will change to down on a trade through 2914.50. This is not likely to happen today, but there is room for a pullback into a retracement zone.

The short-term range is 2914.50 to 3001.50. Its retracement zone at 2958.00 to 2947.75 is a potential downside target. Since the main trend is up, buyers are likely to come in on a test of this area.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 2999.50.

Bearish Scenario

A sustained move under 2999.50 will indicate the presence of sellers. The first downside target is an uptrending Gann angle at 2970.50. Look for a technical bounce on the first test of this angle.

If 2970.50 fails as support then look for the selling to extend into the retracement zone at 2958.00 to 2947.75. Look for buyers to show up on a test of this zone.

Bullish Scenario

Overcoming and sustaining a rally over 2999.50 will signal the return of buyers. If this move creates enough upside momentum then look for a rally into 3001.50. This is a potential trigger point for an acceleration into the steep uptrending Gann angle at 3026.50. Overcoming this angle will put the index in an extremely strong position.