E-mini S&P 500 Index (ES) Futures Technical Analysis – 2986.00 Pivot Controlling Direction Today

December E-mini S&P 500 Index futures are called higher based on the early session trade. Ahead of the opening, U.S. Treasury yields are rising, helping to boost shares of J.P. Morgan Chase, Citigroup and Bank of America. Rising yields tend to make banks more profitable, making their stock more desirable. Stocks are also being supported by renewed optimism in U.S.-China trade talks, which are set to begin October 10-11.

At 13:14 GMT, December E-mini S&P 500 Index futures are trading 2987.50, up 9.00 or +0.30%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3025.75 will change the main trend to up. A move through 2046.25 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 2995.00 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 3025.75 to 2046.25. Its 50% level or pivot at 2986.00 is controlling the intraday direction of the index for a second consecutive session.

The main range is 2811.00 to 3025.75. Its retracement zone at 2918.25 to 2893.00 is major support. This is also a value zone.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2987.50, the direction of the December E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at 2986.00.

Bullish Scenario

A sustained move over 2986.00 will indicate the presence of buyers. Taking out 2995.00 will change the minor trend to up. This could trigger another surge into the minor top at 3012.25.

Another minor top comes in at 3024.50. This is the last minor top before the main tops at 3025.75 and 3032.75.

Bearish Scenario

A sustained move under 2986.00 will signal the presence of sellers. If this creates enough downside momentum, we could see a retest of last week’s low at 2046.25. This is a potential trigger point for an acceleration to the downside with 2918.25 the next major target.