E-mini S&P 500 Index (ES) Futures Technical Analysis – Next Upside Target Angle Moves to 3167.00

September E-mini S&P 500 Index futures posted another record close on Wednesday on the back of stronger-than-forecast U.S. economic data. An optimistic outlook for a U.S.-China trade deal fueled the start of the rally.

Durable goods orders rose 0.6% in October while economists expected a decline of 0.8%. Weekly jobless claims, meanwhile, fell to 213,000 from 227,000. Additionally, third-quarter GDP was revised to show growth of 2.1%, up from a previous reading of 1.9%.

September E-mini S&P 500 Index futures settled at 3153.75, up 10.00 or +0.32%. Volume was extremely light ahead of Thursday’s U.S. Thanksgiving holiday.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early Wednesday when buyers took out yesterday’s high at 3145.00.

The nearest main bottom is 3020.25, which means a change in trend is highly unlikely. However, due to the prolonged move up in terms of price and time, traders should watch for a closing price reversal top.

This chart pattern won’t change the main trend to down, but it will indicate the selling is greater than the buying at current price levels. If confirmed, it could trigger the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 3090.75 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 3090.75 to 3155.00. Its 50% level or pivot comes in at 3122.75.

The second minor range is 3075.75 to 3155.00. Its pivot comes in at 3115.25. The third minor range is 3063.00 to 3155.00. Its pivot is at 3109.00.

Short-Term Outlook

On Wednesday, the September E-mini S&P 500 Index tested an uptrending Gann angle at 3153.75. Overtaking this uptrending angle, moving up at a rate of 8 points per session, will put the index in an extremely bullish position with the next target angle coming in at 3167.00.

Side Notes

The index has posted five consecutive higher-lows. The next lower-low will be an early sign of selling pressure.