E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 4245.75 to Sustain Upside Momentum

September E-mini S&P 500 Index futures are inching higher during Tuesday’s pre-market session. On Monday, the futures index posted a small gain while diverging from the cash market index, which finished lower.

Materials and financials were the biggest drags on the S&P 500 on Monday, while technology and consumer discretionary were the only sectors in positive territory.

At 02:21 GMT, September E-mini S&P 500 Index futures are trading 4249.00, up 3.25 or +0.08%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4248.50 early in today’s session signaled a resumption of the uptrend. A move through 4155.50 will change the main trend to down.

The minor trend is also up. A trade through 4197.25 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 4197.25 to 4254.25. Its 50% level at 4225.75 is potential support. This level will move up as the market moves higher.

The second minor range is 4155.50 to 4254.25. Its retracement zone at 4204.75 to 4193.25 is another potential support zone. This zone will also move up as the index moves higher.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to 4245.75.

Bullish Scenario

A sustained move over 4245.75 will indicate the presence of buyers. Taking out the intraday high at 4254.25 will indicate the buying is getting stronger. This could trigger an acceleration to the upside if the buying volume is strong enough.

Bearish Scenario

A sustained move under 4245.75 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the first minor pivot at 4225.75.

Look for a technical bounce on the first test of 4225.75. If it fails, then look for an acceleration into the second minor retracement zone at 4204.75 to 4193.25. Look for buyers on a test of this area. The Fibonacci level at 4193.25 is a potential trigger point for an acceleration to the downside.