E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 4393.75 Pivot Sets the Tone

September E-mini S&P 500 Index futures are called higher on Tuesday a day after worries about a slowing economy encouraged investors to book profits. Despite the overnight rebound, the spread of the delta coronavirus variant continued to keep investors on edge. However, on the positive side, the U.S. reached the 70% COVID vaccine milestone, according to CDC data.

At 12:10 GMT, September E-mini S&P 500 Index futures are trading 4393.50, up 13.75 or +0.31%.

Stocks that would benefit most from an economic reopening and more widespread vaccination gained in premarket trading Tuesday. Shares of most airlines were higher in premarket trading, along with Carnival Corp.

In other stock related news, the second-quarter earnings season continues with Under Armour shares rising in premarket trading after the company beat estimates on the top and bottom lines.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4422.50 will signal a resumption of the uptrend. A move through 4224.00 will change the main trend to down.

The minor trend is also up. A trade through 4370.75 will change the minor trend to down. Taking out the next minor bottom at 4364.75 will confirm the shift in momentum.

The minor range is 4364.75 to 4422.50. The index is currently straddling its pivot at 4393.75.

The short-term range is 4224.00 to 4422.50. If the minor trend changes to down then its retracement zone at 4323.25 to 4299.75 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to 4393.75.

Bullish Scenario

A sustained move over 4393.75 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into 4422.50.

Bearish Scenario

A sustained move under 4393.50 will signal the presence of sellers. The first two downside targets are minor bottoms at 4370.75 and 4364.75. The latter is a potential trigger point for an acceleration to the downside with 4323.25 the minimum downside target.