E-mini S&P 500 Index (ES) Futures Technical Analysis – Support Moves Up to 4502.25 – 4492.75

September E-mini S&P 500 Index futures finished marginally higher on Tuesday as the benchmark index finished a strong month with a whimper. The index, which rose 2.9% in August, posted its seventh straight month of gains.

The performance reflects the level of investor confidence in U.S. equities derived from the Federal Reserve’s continued dovish tone toward tapering its massive stimulus program, according to Reuters.

On Tuesday, September E-mini S&P 500 Index futures settled at 4520.50, down 4.75 or -0.11%.

Despite hovering near its record high, there are some concerns that could become headwinds over the near-term. While a strong recovery in economic growth and corporate earnings have boosted U.S. stocks, investors are worried about rising coronavirus cases and the path of Fed policy.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4542.25 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 4542.25. Its retracement zone at 4502.25 to 4492.75 is the nearest support.

The short-term range is 4347.25 to 4542.25. If the main trend changes to down then its retracement zone at 4445.00 to 4422.00 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index early Wednesday is likely to be determined by trader reaction to 4521.50.

Bullish Scenario

A sustained move over 4521.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the record high at 4542.25.

There is no resistance so taking out 4542.25 could trigger another acceleration to the upside.

Bearish Scenario

A sustained move under 4521.50 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the minor pivot at 4502.25 to 4492.75. Since the main trend is up, buyers are likely to show up on a test of this area.

Taking out 4492.75 will indicate the selling is getting stronger. This could lead to an acceleration to the downside with 4462.25 the next likely target.