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James Hyerczyk
E-mini S&P 500 Index

September E-mini S&P 500 Index futures are trading higher at the mid-session on Wednesday on easing geopolitical tensions and better than expected economic data from China.

Geopolitically, tensions in Hong Kong between the government and protesters eased after the withdrawal of a controversial extradition bill, and in the UK, a cross-party alliance of rebel lawmakers defeated British Prime Minister Boris Johnson in parliament on Tuesday, moving to prevent him from taking the country out of the European Union without a formal agreement on October 31.

At 16:51 GMT, September E-mini S&P 500 Index futures are trading 2933.75, up 27.75 or +0.95%.

Early Wednesday, a report showed growth in China’s services sector had expanded at its fastest rate in three months in August, despite broader economic headwinds.

Later in the session, sentiment also got a boost after New York Federal Reserve President John Williams said in a speech the central bank will act as appropriate to sustain the current economic expansion.

Daily September E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2946.50 will signal a resumption of the uptrend. The main trend will change to down on a trade through 2810.25.

The minor trend is also up. A trade through 2889.00 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 3029.50 to 2775.75. Its retracement zone at 2902.50 to 2932.50 is acting like resistance. Buyers are trying to overcome 2932.50 today.

The main range is 3029.50 to 2732.25. Its retracement zone at 2880.75 to 2845.75 is support. This zone is also controlling the longer-term direction of the index.


Daily Technical Forecast

Based on the early price action and the current price at 2933.75, the direction of the September E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the short-term Fibonacci level at 2932.50.

Bullish Scenario

A sustained move over 2932.50 will indicate the presence of buyers. This could drive the market into last week’s high at 2946.50. This price is a potential trigger point for an acceleration into the downtrending Gann angle at 2975.50.

Bearish Scenario

A sustained move under 2932.50 will signal the presence of sellers. This could trigger a break into the downtrending Gann angle at 2921.50. If this angle fails as support then look for the selling to possibly extend into the uptrending Gann angle at 2906.25, followed closely by the short-term 50% level at 2902.50.

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