E-mini S&P 500 Index (ES) Futures Technical Analysis – Straddling 4390.75 Pivot Looking for Direction

September E-mini S&P 500 Index futures are trading flat shortly after the cash market opening. The market is being supported by a strong performance by Google-parent, Alphabet, but gains are being limited ahead of the release of the Federal Reserve’s monetary policy statement at 18:00 GMT and Fed Chair Powell’s subsequent press conference. Investor are hoping the Fed sheds some light on the impact of rising inflation and the Delta variant on its monetary policy stimulus.

At 14:26 GMT, September E-mini S&P 500 Index futures are trading 4395.00, up 0.50 or +0.01%.

In stock related news, Alphabet popped more than 4% after the tech giant posted quarterly results, registering a 69% jump in advertising. Pfizer shares rose about 2% after the company reported stronger-than-expected earnings and raised its 2021 sales forecast for the COVID vaccine.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4416.75 will signal a resumption of the uptrend. A move through 4424.00 will change the main trend to down.

The minor trend is also up, but a new minor top was formed at 4416.75 after Tuesday’s sell-off.

The minor range is 4416.75 to 4364.75. The index is currently straddling its 50% level or pivot at 4390.75.

The short-term range is 4224.00 to 4416.75. Its retracement zone at 4320.25 to 4297.50 is the primary downside target and nearest value area.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to the pivot at 4390.75.

Bullish Scenario

A sustained move over 4390.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for buyers to make a run at the record high of 4416.75.

Bearish Scenario

A sustained move under 4390.75 will signal the presence of sellers. The first downside target is 4364.75. If this price fails and selling volume increases then look for an acceleration to the downside over the short-run with 4320.25 to 4297.50 the next likely target area.