E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Close Over 3392.50 to Sustain Momentum

September E-mini S&P 500 Index futures are trading sharply higher ahead of the opening on Monday as the country’s top drug regulator’s approval for emergency use of antibody-rich blood plasma on COVID-19 patients lifted treatment hopes and spurred bets of a quicker economic recovery.

At 13:40 GMT, September E-mini S&P 500 Index futures are at 3420.00, up 27.50 or +0.81%. Its new record high is 3424.00.

The U.S. Food and Drug Administration’s move to use plasma from recovered patients was hailed by President Donald Trump and came a day after he accused it of impeding the rollout of treatments for political reasons.

Among stocks, Apple Inc gained another 1.8% premarket and was on track to open above $500 per share for the first time. The iPhone maker became the first public U.S. company to cross $2 trillion in market value last week.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out last week’s high at 3396.25.

The main trend will change to down on a trade through 3195.00. This is highly unlikely but due to the prolonged move up in terms of price and time, the index is vulnerable to a closing price reversal top. This chart pattern won’t change the trend to down, but it could signal a short-term correction.

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

Daily Swing Chart Technical Forecast

In this momentum and headline driven market, the only thing at this time that bullish trend traders need to worry about is a close below Friday’s finish at 3392.50. This will be the first sign of weakness today, but it will not signal a change in trend.