E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 4220.75, Weakens Under 4194.75

September E-mini S&P 500 Index futures are trading flat late in the session on Thursday after clawing back earlier losses. U.S. technology stocks are giving the broad-based index its biggest boost on optimism around a speedy economic recovery.

Investors seem to be ignoring the threat of higher interest rates from the Federal Reserve. The central bank on Wednesday moved its first projected rate increases from 2024 into 2023. The price action suggests tech traders weren’t surprised by the Fed with some investors saying the Fed didn’t say anything that the market didn’t already know.

At 18:51 GMT, September E-mini S&P 500 Index futures are trading 4209.75, down 3.25 or -0.08%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 4258.25 will signal a resumption of the uptrend. The main trend will change to down on a move through the nearest swing bottom at 4155.50.

The minor range is 4258.25 to 4183.00. Its 50% level at 4220.50 is the first upside target and potential resistance.

The short-term range is 4155.50 to 4258.25. The market is trading on the strong side of its retracement zone at 4206.75 to 4194.75, making it support.

The main range is 4020.00 to 4258.25. If the main trend changes to down then look for a test of its retracement zone at 4239.00 to 4111.00.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the minor 50% level at 4220.75.

Bearish Scenario

A sustained move under 4220.75 will indicate the presence of sellers. The first downside target is the short-term 50% level at 4206.75, followed by the short-term Fibonacci level at 4194.75.

A failure to hold 4194.75 will be a sign of weakness. This could lead to a test of the intraday low at 4183.00. This is a potential trigger point for an acceleration into the main bottom at 4155.50, followed by the main retracement zone at 4139.00 to 4111.00.

Bullish Scenario

A sustained move over 4220.75 will signal the presence of buyers. This is a potential trigger point for an acceleration to the upside with 4258.25 the near-term target.