E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Close Above 3443.00 to Sustain Rally

September E-mini S&P 500 Index futures are trading at an all-time high shortly after the mid-session on Wednesday. The rally is being fueled by technology stocks that have thrived during the COVID-19 pandemic following the upbeat quarterly earnings from Salesforce and HP Enterprise.

At 17:36 GMT, September E-mini S&P 500 Index futures are trading 3467.00, up 24.00 or +0.70%.

Salesforce.com Inc, which is set to enter the blue-chip Dow index next week, surged 26.8% as it raised annual revenue forecast due to high demand for its online business software.

Hewlett Packard Enterprise Co added 4.6% as its full-year profit outlook came in ahead of market expectations.

The tech sector climbed 2.1%, while Netflix Inc, Microsoft Corp and Amazon.com Inc, considered to be stay-at-home winners, gained between 2.3% and 9.6%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early Wednesday when buyers took out yesterday’s high at 3448.75. The main trend will change to down on a trade through the nearest main top at 3195.00.

The minor trend is also up. A trade through 3344.75 will change the minor trend to down. This will also shift momentum to the downside.

Short-Term Outlook

The September E-mini S&P 500 Index remains momentum driven. There is no resistance so we’ll have to rely on a chart pattern to tell us when there is a shift in momentum. The best signal will be a closing price reversal top. This chart pattern won’t change the trend to down, but if confirmed, it could trigger the start of a 2 to 3 day correction.