Based on the early price action and the current price at 8483.25, the direction of the December E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to yesterday’s close at 8405.50.
December E-mini NASDAQ-100 Index futures soared to a record high shortly after the opening, following a tweet from President Trump that said, “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”
The rally was primarily fueled by a surge in the VanEck Vectors Semiconductor ETF (SMH) and the iShares PHLX Semiconductor ETF (SOXX). Both technology ETFs rose more than 1% to record highs on the hopes of a trade deal.
At 15:09 GMT, December E-mini NASDAQ-100 Index futures are trading 8483.50, up 78.00 or +0.92%.
The main trend is up according to the daily swing chart. The trend turned up earlier in the session after buyers took out the previous main top at 8458.75.
A trade through 8168.25 will change the main trend to down. Today’s session begins with the index inside the window of time for a closing price reversal top. Although upside momentum is strong, traders should continue to be aware of the possibility of a closing price reversal top especially given the volatility of President Trump’s tweets.
Based on the early price action and the current price at 8483.25, the direction of the December E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to yesterday’s close at 8405.50.
A sustained move over 8405.50 will indicate the presence of buyers. There is no resistance since the index is at an all-time high. The only worry for bullish traders should be the closing price reversal top.
The first sign of weakness will be a sustained move under the previous main top at 8458.75. The second sign of weakness will be a break under yesterday’s close at 8405.50. Finally, crossing to the weak side of a steep uptrending Gann angle at 8392.25 will indicate the selling pressure is getting stronger. This could trigger a steep break into a minor bottom at 8297.00, followed by a series of uptrending Gann angles at 8287.25, 8280.25 and 8258.25.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.