E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 4326.75, Weakens Under 4308.50

September E-mini S&P 500 Index futures are edging lower on Wednesday after the index ended a seven-day winning streak in the previous session. Volume is on the light-side as investors await the release of the minutes from the Federal Reserve’s June meeting at 18:00 GMT.

The Fed’s minutes are expected to be dovish with the central bank looking for progress in the labor market and not worried that recent inflation will become a persistent trend. Slowing down the bond buying would be the Fed’s first major retreat from the easy policies it put in place when the economy shut down last year.

At 14:43 GMT, September E-mini S&P 500 Index futures are trading 4324.50, down 9.50 or -0.22%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum may be getting ready to shift to the downside with the formation of the potentially bearish closing price reversal top on Tuesday. If confirmed, this chart pattern could trigger a minimum 2 to 3 day correction.

A trade through 4348.00 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 4305.25 will confirm the closing price reversal top.

The minor trend is also up. A trade through 4269.25 will change the minor trend to down. This will confirm the shift in momentum.

The first minor range is 4348.00 to 4305.25. Its pivot is 4326.50.

The second minor range is 4269.25 to 4348.00. Its pivot comes in at 4308.50.

The short-term range is 4126.75 to 4348.00. If the minor trend changes to down then its pivot at 4237.25 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index on Wednesday will be determined by trader reaction to 4326.50.

Bullish Scenario

A sustained move over 4326.50 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into 4348.00. This price is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 4326.50 will signal the presence of sellers. The first downside target is 4308.50, followed by 4305.25. This is a potential trigger point for an acceleration to the downside with potential targets coming in at 4269.25 and 4237.25.