September E-mini S&P 500 Index futures are trading higher at the end of the mid-session on Tuesday. The market is retreating from its high but still in a position to threaten its all-time high reached in February.
The index is currently hovering around levels not seen before the onset of the coronavirus pandemic. The benchmark is trading about a half a percent below the all-time high hit on February 19, when investors started dumping shares in anticipation of what proved to be the biggest slump in the U.S. economy since the Great Depression.
At 17:28 GMT, September E-mini S&P 500 Index futures are trading 3374.25, up 21.50 or +0.71%.
Buyers continue to support value stocks over growth stocks in anticipation of a fresh stimulus package from Congress. Aiding sentiment, President Vladimir Putin claimed Russia had become the first country in the world to grant regulatory approval to a COVID-19 vaccine. But the approval has concerned some experts as the vaccine still must complete final trials.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The trade through yesterday’s high reaffirmed the uptrend earlier in the session.
The main trend changes to down on a move through 3195.00. This is highly unlikely but due to the prolonged move in terms of price and time, traders should start watching for a potentially bearish closing price reversal top. This won’t change the trend but it could lead to a 2 to 3 day correction.
With the market already pricing in a fiscal stimulus deal, don’t be surprised by a “buy the rumor, sell the fact” situation once the deal is agreed upon.
The short-term range is 3195.00 to 3379.00. its 50% level at 3287.00 is the nearest downside target.
The key level to watch into the close on Tuesday is yesterday close at 3352.75. Holding above this level will indicate the buying is still strong into the close. Closing below it will form a closing price reversal top. If confirmed on Wednesday, then look for the start of a 2 to 3 day correction.
This article was originally posted on FX Empire
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