The daily chart indicates that there is plenty of room to the upside with the February 20 contract high at 3396.50 the next major upside target.
September E-mini S&P 500 Index futures are called sharply higher on the back of hopes for new stimulus from U.S. lawmakers and positive developments toward a coronavirus vaccine. The benchmark index was boosted earlier in the session after European Union leaders agreed on a massive coronavirus relief program overnight.
At 13:08 GMT, September E-mini S&P 500 Index futures are trading 3266.00, up 20.75 or +0.64%.
According to Reuters, advisers to President Donald Trump and congressional Democrats were set to discuss the next steps in responding to the coronavirus crisis on Tuesday, with congressional Republicans saying they were working on a $1 trillion relief bill.
Stocks in play today are IBM, which jumped 5.3% in the premarket after it signaled higher demand in its cloud computing business and after it posted a better-than-expected quarterly profit.
Among other stocks, oil majors Exxon Mobil Corp and Chevron Corp rose 2.2% and 1.4%, respectively, on prospects of higher fuel demand.
The main trend is up according to the daily swing chart. A trade through 3105.25 will change the main trend to down.
The minor trend is also up. Taking out 3188.50 will change the minor trend to down. This will also shift momentum to the downside.
The daily chart indicates that there is plenty of room to the upside with the February 20 contract high at 3396.50 the next major upside target.
The biggest worry for bullish traders today should be the closing price reversal top.
Due to the prolonged move up in terms of price and time, the market is vulnerable to a potentially bearish closing price reversal top.
A close under 3245.25 will form a closing price reversal top. This won’t change the trend, but it could trigger the start of a 2 to 3 day correction.
For a look at all of today’s economic events, check out our economic calendar.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.