E-mini S&P 500 Index (ES) Futures Technical Analysis – Weakens Under 3346.00, Strengthens Over 3389.25

September E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Wednesday, as technology-focused companies climbed following three sessions of intense selling pressure. The early gains in the technology sector were being fueled by a recovery in shares of Apple Inc, Salesforce.com Inc and Microsoft Corp.

At 13:30 GMT, September E-mini S&P 500 Index futures are at 3376.00, up 40.50 or +1.21%.

In other news, Wall Street’s fear gauge, the VIX, slipped further away from near three-month highs, as stock markets also shrugged off news about AstraZeneca pausing global trials of its experimental COVID-19 vaccine after an unexplained illness in a participant.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through the nearest main bottom at 3195.00. A move through 3587.00 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum.

The short-term range is 3105.25 to 3587.00. Earlier in the session, the index found support inside its retracement zone at 3346.00 to 3289.25.

The first minor range is 3191.50 to 3587.00. Its 50% level at 3389.25 is the first upside target.

The new minor range is 3587.00 to 3295.50. Its retracement zone at 3441.25 to 3475.75 is another potential upside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 3346.00.

Bullish Scenario

A sustained move over 3346.00 will indicate the presence of buyers. This could trigger a surge into the next 50% level at 3389.25. This price is a potential trigger point for an acceleration to the upside with the new retracement zone at 3441.25 to 3475.75 the next likely upside target.

Bearish Scenario

A sustained move under 3346.00 will signal the presence of sellers. This could trigger a break into the intraday low at 3295.50, followed closely by a Fibonacci level at 3289.25.

The daily chart indicates there is plenty of room to the downside under 3289.25 with 3195.00 to 3191.50 the primary downside target.

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