September E-mini S&P 500 Index futures are surging shortly after the opening, erasing earlier session weakness. The jump in prices was triggered by a surprise announcement by the U.S. which said it was delaying China tariffs until December 15 on items including cellphones and clothing. The U.S. also removed some items from the list of new tariffs outright.
At 14:24 GMT, September E-mini S&P 500 Index futures are trading 2934.25, up 54.00 or +1.88%. This is up from a low of 2866.75.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of a closing price reversal bottom at 2775.75 on August 6.
A trade through 3029.50 will change the main trend to up. A move through 2775.75 will signal a resumption of the downtrend.
The minor trend is up. It turned up today when buyers took out the minor top at 2940.75. This reaffirmed the shift in momentum. A trade through 2866.75 will change the minor trend to down.
The main support is the retracement zone at 2880.75 to 2845.75. This zone helped stop the selling at 2866.75 earlier today.
The short-term retracement zone at 2902.50 to 2932.50 is acting like a pivot zone. The market is currently trading on the strong side of this zone.
Daily Technical Forecast
The key area to watch all session on Tuesday is the price cluster at 2932.25, 2932.50 and 2933.50. This cluster is being formed by a pair of Gann angles and the short-term Fibonacci level.
A sustained move over 2933.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into the next downtrending Gann angle at 2981.50.
A sustained move under 2932.25 will signal the return of sellers. This could trigger a break back into a short-term 50% level at 2902.50. This is followed by another 50% level at 2880.75, followed by the low of the session at 2866.75.
This article was originally posted on FX Empire
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