E-mini S&P 500 Index (ES) Futures Technical Analysis – Traders Have Sights Set on 3220.50The direction of the September E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to 3129.00.
September E-mini S&P 500 Index futures are called higher based on the pre-market trade. The market is following-through to the upside following last week’s solid gains as investors continue to downplay the continued rise in coronavirus cases.
Helping to boost the benchmark index are shares of stocks tied to an economic reopening. Carnival Corp, Royal Caribbean and Norwegian Cruise Lines all jumped more than 3%. American Airlines and Delta Air Lines also posted solid gains.
The upside momentum started early Monday with a big jump in Chinese stocks, with the Shanghai Composite rallying more than 5%.
At 13:05 GMT, September E-mini S&P 500 Index futures are trading 3169.50, up 40.50 or +1.29%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out last week’s high. The main trend changes to down on a trade through the last swing bottom at 2923.75.
The short-term range is 3220.50 to 2923.75. Its 50% level at 3072.00 is support.
The second short-term range is 2751.50 to 3220.50. Its 50% level at 2986.00 provides additional support.
The major support is the long-term Fibonacci level at 2926.25.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at 3169.50, the direction of the September E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to 3129.00.
A sustained move over 3129.00 will indicate the presence of buyers. If it continues to hold above the two tops at 3145.75 and 3156.25, it will indicate the buying is getting stronger with the next major target 3220.50.
A sustained move under 3145.75 will be the first sign of weakness. Turning lower on a trade through 3129.00 will indicate the selling is getting stronger. This could lead to a near-term pullback into the first pivot at 3072.00.