S&P500 Futures Analysis – 21Sep2020

The S&P500 futures had been in strong uptrend in August 2020, and they have been facing selling pressure ever since they hit a high of 3585 at the start of September. A correction was inevitable after such a sharp one-way rally.

At today’s day low of 3217, the S&P500 futures were down more than 360 points, or 10% decline from the top, making this a 10% correction. Short covering and buying emerged after the futures took support at 3220, and kept defending that level, and by end of day, the futures had created a base at 3220 to start a reversal till 3274.

Technical analysis of the 5 hour chart of S&P500 futures indicates that the futures can move up till 3330-3340 if they can stay above 3250. This upmove is still part of the downmove in progress. Clean uptrend will start above 3430. And for now, 3220 is the absolute support, below which fresh breakdown will start. Thanks.