E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 3072.00 to Sustain Momentum

September E-mini S&P 500 Index futures are set to open stronger on Tuesday as a record jump in U.S. retail sales helped spike prices higher. The index is also being underpinned by positive trial results from a potential coronavirus treatment and hopes of more stimulus.

At 13:16 GMT, September E-mini S&P 500 Index futures are trading 3142.50, up 80.50 or +2.63%.

Just a short while ago, the U.S. government reported a record 17.7% increase in retail sales for May. Economists were looking for a gain of 7.7%. Meanwhile, multiple reports said dexamethasone – a widely available drug – can help critically ill coronavirus patients.

Sentiment was also lifted after Bloomberg News reported, citing people familiar with the plan, the Trump administration is drawing up a $1 trillion infrastructure proposal.

Shares of companies that would benefit from the economy reopening led the premarket gains. United, Delta and American Airlines all rose at least 6.8%. Norwegian Cruise Line, Carnival and Royal Caribbean jumped more than 8% each. MGM Resorts, Kohl’s and Simon Property advanced 7.5%, 6% and 6.7% respectively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3220.50 will signal a resumption of the uptrend. The main trend will change to down on a move through 2751.50.

The minor trend is down. A move through 2923.75 will signal a resumption of the downtrend.

The minor range is 3220.50 to 2923.75. Its 50% level or pivot at 3072.00 is controlling the price action today.

The short-term range is 2751.50 to 3220.50. Its retracement zone at 2986.00 to 2930.50 is support. Additional support is the major Fibonacci level at 2926.25.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 3142.50, the direction of the September E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to 3072.00.

Bullish Scenario

A sustained move over 3072.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for an eventual retest of 3220.50.

Bearish Scenario

A sustained move under 3072.00 will signal the presence of sellers. This could trigger a retest of the short-term 50% level at 2986.00, followed by the main Fibonacci level at 2926.25.

For a look at all of today’s economic events, check out our economic calendar.