E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 3370.25 Sets the Tone into Close

September E-mini S&P 500 Index futures are trading flat at the mid-session on Friday, the market was lifted by strong U.S. economic data, but those gains fizzled as investors expressed concerns about valuations. Earlier this week in the cash market, the S&P 500 broke above its late-February high and notched a fresh all-time high.

At 15:45 GMT, September E-mini S&P 500 Index futures are trading 3381.00, up 0.25 or +0.01%.

Data from IHS Markit showed U.S. manufacturing activity hit its highest level in 19 months in August, while services were at their highest level in 17 months. IHS Markit economist Sian Jones said in a statement:  “Client demand picked up among both manufacturers and service providers.

Existing home sales for July saw a record month-over-month spike of 24.7%. The average selling price for homes also hit an all-time high, jumping to $304,100.

Apple shares rose 4% to an all-time high, building on this week’s strong gain. Chevron and Exxon Mobil dropped more than 1% each, however, as oil prices fell by more than 3%. Deere and Foot Locker were up 5.8% and 2.4%, respectively, on better-than-expected quarterly results.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3395.75 will signal a resumption of the uptrend. The main trend will change to down on a trade through 3195.00.

The minor trend is also up. A trade through 3344.75 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 3395.75 to 3344.75. Its 50% level at 3370.25 is controlling the short-term direction of the index.

The short-term range is 3195.00 to 3395.75. If the minor trend changes to down then look for a break into the 50% level at 3295.25.

Daily Outlook

The direction of the September E-mini S&P 500 Index into the close on Friday will be determined by trader reaction to the pivot at 3370.25.

For a look at all of today’s economic events, check out our economic calendar.