E-mini S&P 500 Index (ES) Futures Technical Analysis – New Record High as Minor Bottom Moves Up to 3484.25

September E-mini S&P 500 futures are trading higher late Wednesday with technology stocks driving the benchmark index to another record high. One catalyst behind the rally was a moderate rise in U.S. private payrolls in August. Another catalyst was strong demand for high-flying shares of technology companies, seen as resilient to the hit from the coronavirus outbreak, including Apple Inc, Amazon.com, Facebook Inc and Slack Technologies.

At 18:20 GMT, September E-mini S&P 500 Index futures are trading 3563.75, up 36.75 or 1.04%.

U.S. private employers hired 428,000 workers in August, according to the ADP National Employment report, far below economists’ forecast of a 950,000 increase. The report follows encouraging manufacturing sector surveys on Tuesday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out Tuesday’s high at 3530.00. The main trend will change to down when sellers take out the last main bottom at 3195.00.

The minor trend is also up. The new minor bottom is 3484.25. A trade through this level will change the minor trend to down. This will also shift momentum to the downside.

Short-Term Outlook

There is no resistance. Furthermore, this market is begin driven by momentum, especially momentum in the technology-sector.

Since there is no resistance and momentum is so strong, it doesn’t make sense to try to pick a top. Even though the closing price reversal top formed earlier in the session failed after one day, it remains the best chart pattern to identify a top.

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