E-mini S&P 500 Index (ES) Futures Technical Analysis – New Support Range Moves Up to 4498.25 – 4489.75

September E-mini S&P 500 Index futures hit another record high on Monday as investors shrugged off the nationwide COVID-19 resurgence and uncertainty over how quickly the Federal Reserve plans to begin tapering its easy money policies.

Investors also seemed to show little concern over the outcome of Friday’s U.S. Non-Farm Payrolls report even after Fed Chair Powell indicated the central bank’s decision on tapering will be data dependent.

At 20:40 GMT, September E-mini S&P 500 Index futures are trading 4530.00, up 24.50 or +0.54%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Early Tuesday, a trade through 4534.50 will signal a resumption of the uptrend. A move through 4462.25 will change the main trend to down.

The new minor range is 4462.25 to 4534.50. Its retracement zone at 4498.25 to 4489.75 is new support. This zone will move up as the market moves higher.

Short-Term Outlook

Given the prolonged move up in terms of price and time. The only pattern traders need to be aware of is the higher-higher, lower-close also known as the closing price reversal top.

This chart pattern won’t change the main trend to down, but if confirmed, it could signal the start of a 2 to 3 day correction.

It doesn’t make sense to try to pick a top. There is no advantage to being the first one in there unless you’re lucky enough to pick the exact top on your first attempt. Most counter-trend traders take several losses before they catch the turn. They eventually start to add up.

It’s better to let the market turn lower then sell weakness than it is to pick a top.