E-mini S&P 500 Index (ES) Futures Technical Analysis – Strong Over 4506.00, Weak Under 4495.50 into the Close

September E-mini S&P 500 Index futures are trading lower at the mid-session on Wednesday on concerns that the spread of the Delta coronavirus variant could slow economic growth and on uncertainty over the timeline for the Federal Reserve to pull back its accommodative policies.

At 16:12 GMT, September E-mini S&P 500 Index futures are trading 4500.50, down 18.75 or -0.41%.

Nine out of eleven sub-sectors fell with economy-sensitive sectors like industrials, materials and real estate leading declines.

In stock related news, Microsoft Corp, Facebook Inc and Google-owner Alphabet Inc were down between 0.1% and 0.6%.

Gains in energy shares helped limit some losses with Exxon Mobil, Chevron, Occidental Petroleum and Halliburton up between 0.6% and 0.3%, as oil prices jumped on lower output.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4549.50 will signal a resumption of the uptrend. A move through 4462.25 will change the main trend to down.

The minor range is 4462.25 to 4549.50. The index is currently testing its retracement zone at 4506.00 to 4495.50.

The short-term range is 4347.75 to 4549.50. If the main trend changes to down then look for the selling to possibly extend into its retracement zone at 4448.50 to 4424.75. This is a value area so look for buyers to show up on a test of this zone.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index into the close on Wednesday is likely to be determined by trader reaction to 4506.00 and 4495.50.

Bullish Scenario

A sustained move over 4506.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive into a minor pivot at 4520.75.

Bearish Scenario

A sustained move under 4495.50 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to possibly extend into the main bottom at 4462.25, followed closely by a short-term 50% level at 4448.50.