September E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The catalyst behind the selling is the stronger-than-expected U.S. consumer inflation data.
The consumer price index rose 1.9 percent in August on a year-over-year basis, more than expected.
This news isn’t likely to turn the Fed hawkish. Most of the adjusting will be in the futures market especially in the U.S. Dollar Index, which was severely oversold.
Technical Analysis
The main trend is up according to the daily swing chart. A trade through 2497.50 will signal a resumption of the uptrend.
A break back under the old top at 2488.50 will also indicate that the selling is greater than the buying at current price levels.
Forecast
The nearest upside Gann angle is 2509.00. Overcoming this angle will put the index in an extremely bullish position.
The daily chart is wide open to the downside with the nearest uptrending angle coming in at 2465.00.
Trader reaction to 2488.50 will likely determine the strength or the weakness of the index today.