Following a negative Thursday session, the U.S. indices are looking to regain their swagger going into the Labor Day weekend. For the first hour of trade since the Wall Street open, both the DJIA and S&P 500 are up slightly. A bullish bias is creeping into the intraday action after a strong reading from this morning’s Michigan Consumer Sentiment Index. The number came in at 96.2, above projections of 95.5.

Although a largely arbitrary metric, the Michigan Consumer Sentiment Index does have some influence on the U.S. markets. It is listed as a secondary market mover but does shed some light on consumer activity. Since it’s 10:00 AM EST release, the September E-mini S&P 500 has pushed session highs and is trending north above the 2900.00 handle.

U.S. Indices Breakdown: September E-mini S&P 500 Futures

Sometimes an economic release can make all of the difference. The 30-minute price bar for September E-mini S&P 500 futures spiked north 28 ticks immediately following the Michigan Sentiment Index release. It appears that traders were looking for any good news to bid.

For the rest of the trading day, here are the key levels for this market:

• Resistance(1): All-Time High, 2917.50
• Two-Way Catalyst: Psyche level, 2900.00
• Support(1): 38% Retracement, 2890.25

Bottom Line: During Thursday’s sell-off, price remained above the 38% retracement of the current wave. This is an important technical characteristic and one the preserves my bullish bias. For the rest of the trading day, I will be scalping downside support from just above the 38% retracement level (2890.25).

Buys from 2890.50 will produce 8-12 ticks using a tight 1:1 risk vs reward ratio. This is a quick hitter — immediate and positive price action upon entry is the goal.