The September E-mini S&P 500 soared to the upside this morning boosted by strong economic data from Australia and China. Although the ADP employment outlook surprising missed analyst estimates, investors shrugged off the news. Thin trading conditions may have contributed to the rally. Many large traders and institutions have been on the sidelines this week due to Monday’s Labor Day holiday. In addition, other key market players have chosen to stand aside in front of Friday’s August U.S. Non-Farm Payrolls Report.
This morning the E-mini S&P 500 completed a 50% retracement of the 1127.75 to 1037.00 range to 1977.25. If upside momentum continues, then look for the rally to reach the Fibonacci retracement level at 1088.00.
Downtrending Gann angle resistance on the daily chart is at 1089.75. An uptrending Gann angle from the 1002.75 bottom is at 1084.75. The combination of the Gann angles and the Fib level form a cluster at 1084.75 to 1089.75.
On Thursday the cluster will be formed at 1086.75 to 1088.00. The downtrending angle will fall between these two levels at 1087.75. This could be indicating that this market has more room to run to the upside tomorrow.
