E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 2891.25 to Sustain Strong Upside Bias

The benchmark S&P 500 Index is trading slightly better during the pre-market session. The market is trying to follow-through to the upside following yesterday’s strong surge. On Thursday, investors reacted to weaker than expected U.S. consumer inflation, which may have been an early indication that inflation was slowing down. This tends to be bullish for stocks. Perhaps limiting gains are worries over the lingering trade dispute.

AT 0539 GMT, September E-mini S&P 500 Index futures are trading 2906.00, up 0.75 or +0.03%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2917.50 will signal a resumption of the uptrend. The trend will change to down on a move through 2865.00.

The short-term range is 2917.50 to 2865.00. The market is currently trading on the strong side of its 50% level or pivot at 2891.25. This is helping to give the index a strong upside bias.

The main range is 2803.00 to 2917.50. Its retracement zone at 2860.25 to 2846.75 is the major support.

Daily Swing Chart Technical Forecast

Based on the price action this week, the direction of the September E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to the short-term pivot at 2891.25.

A sustained move over 2891.25 will indicate the presence of buyers. If they can sustain the upside momentum then we could see a move into the minor top at 2912.50 and the main top at 2917.50.

If 2891.25 fails as support then look for a potential acceleration to the downside. The bigger picture shows there is plenty of room to the downside with the first target a minor bottom at 2867.25, a main bottom at 2865.00 and a 50% level at 2860.25.