September E-mini S&P 500 Index futures are trading lower at the mid-session, with investors being cautious before potential hints from the Federal Reserve on when it would taper its massive monetary stimulus. The central bank’s latest policy statement is expected to be released with fresh economic projections at 18:00 GMT.

The Fed has previously tried to assuage concerns that rising inflation would prompt it to tighten its ultra-loose monetary policy, but data on Tuesday showing a jump in producer prices has again raised expectations the central bank could begin debating closing the taps at its meeting this week.

At 16:49 GMT, September E-mini S&P 500 Index futures are at 4226.25, down 10.25 or -0.24%.

In stock-related news, Citi shares slumped 3.8% after Bloomberg reported the bank warned of rising costs and slipping revenue. Chief financial officer Mark Mason said he expected second-quarter expenses to increase to somewhere between $11.2 billion and $11.6 billion, according to Bloomberg.

Daily September E-mini S&P 500 IndexDaily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may have shifted to the downside following the confirmation of yesterday’s closing price reversal top.

A trade through 4258.25 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 4155.50 will change the main trend to down.

The minor trend is also up. A trade through 4197.25 will change the minor trend to down. This will confirm the shift in momentum.

The minor range is 4197.25 to 4258.2. The index is currently straddling its 50% level at 4227.75.

The second minor range is 4155.50 to 4258.25. Its retracement zone at 4206.75 to 4194.75 is the next potential downside target and possible support. Taking out 4194.75 will indicate the selling pressure is getting stronger. This could trigger an acceleration into the main bottom at 4155.50, and the short-term retracement zone at 4139.00 to 4111.00.

Story continuesDaily Swing Chart Technical Forecast

The direction of the September E-mini S&P 500 Index into the close on Wednesday is likely to be determined by trader reaction to 4227.75.

Bullish Scenario

A sustained move over 4227.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of 4258.25. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 4227.75 will signal the presence of sellers. This could trigger a fast break into 4206.75 to 4194.75. Look for an acceleration to the downside if 4194.75 fails as support. This could trigger a steep sell-off into the main bottom at 4155.50, followed by the short-term retracement zone at 4139.00 to 4111.00.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


  • Natural Gas Price Forecast – Natural Gas Markets Stabilize at $3.20

  • E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trend Up, Momentum Down; Straddling 13992.75 Pivot

  • USD/INR: Rupee Falls for Seventh Straight Session Ahead of Fed Decision

  • Silver Price Prediction – Prices Slide as the Dollar Pops Following Fed Meeting

  • Silver Price Daily Forecast – Silver Remains Range-Bound While Traders Wait For Fed Decision

  • Gold Price Forecast – Gold Markets Await Longer Term Signal

(305) 707 0888