E-mini S&P 500 Index (ES) Futures Technical Analysis – Within Striking Distance of Record High at 4258.25

September E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The price action suggests the market may have enough upside momentum to challenge last week’s record high.

A broad group of stocks were surging in premarket trading and set to push the benchmark above a new all-time high. Tesla added more than 2%, while GM and Caterpillar each gained about 1%.

At 12:44 GMT, September E-mini S&P 500 Index futures are trading 4251.50, up 20.00 or +0.47%.

The banking sector gained ahead of the Fed’s annual bank stress test results, which are scheduled for release after the bell on Thursday. Goldman Sachs shares rose about 1% in premarket trading.

In economic news, data out Thursday showed jobless claims totaled 411,000 for the week-ended June 19, higher than an estimate of 380,000 from economists polled by Dow Jones.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 4258.25 will change the main trend to down. A move through 4126.75 will signal a resumption of the downtrend.

The minor range is 4258.25 to 4126.75. Its 50% level at 4192.50 is the nearest support.

The short-term range is 4020.00 to 4258.25. Its retracement zone is support. This zone stopped the selling at 4126.75 on June 21.

Daily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to 4231.50.

Bullish Scenario

A sustained move over 4231.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of 4258.25. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 4231.50 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the minor pivot at 4192.50.