E-mini S&P 500 Index (ES) Futures Technical Analysis – Rangebound Trade Signals Impending Volatility

September E-mini S&P 500 Index futures are edging higher shortly after the mid-session for a third trading session on Friday. Both volume and volatility are below average as traders take a breather while assessing the latest earnings reports and news about another surge in coronavirus cases.

The market is also caught between the bulls who are betting on more stimulus measures and the bears who are banking on further business disruptions due another record-breaking rise in COVID-19 cases across the country.

At 18:07 GMT, September E-mini S&P 500 Index futures are trading 3214.50, up 20.00 or +0.63%.  Despite the buying slowdown since Wednesday, the market is still poised to close higher for the week.

Helping to weigh on sentiment were shares of Microsoft, Apple and Amazon, which slid on Friday. Meanwhile, the market was supported by strength in the utilities and healthcare sectors which rose the most among the major S&P sectors.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3233.25 will signal a resumption of the uptrend. The main trend will change to down on a move through the nearest main bottom at 3105.25.

The minor trend is also up. The minor trend will change to down on a trade through 3119.00. If the market takes out 3233.25 then the minor bottom will move up to 3188.50.

The main range is 3396.50 to 3165.50. This zone is controlling the longer-term direction of the index.

Short-Term Outlook

The index is trading inside yesterday’s range which tends to indicate investor indecision and impending volatility.

Basically, taking out 3233.25 could trigger an acceleration to the upside since there is no resistance until the February 20 main top at 3396.50.

A break through 3188.50 will indicate the return of sellers. This could lead to a break into a minor pivot at 3176.00.