E-mini S&P 500 Index (ES) Futures Technical Analysis – Main Trend Changes to Down on Move Through 2958.75

December E-mini S&P 500 Index are trading lower at the mid-session after giving back earlier gains. The index was primarily supported by optimism ahead of the start of high-level U.S.-China trade talks, but they aren’t expected to take place for two weeks. So a little bit of that optimism must have worn off as the trading session progressed.

At 15:39 GMT, December E-mini S&P 500 Index is trading 2987.50, down 9.50 or -0.31%.

Essentially, investors are a little reluctant to buy strength this close to all-time highs given uncertainties over trade, Brexit, the Middle East, the strength of the global economy and Fed policy.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but momentum has been trending lower since the formation of the closing price reversal top at 3025.75 on September 19.

A trade through 2958.75 will change the main trend to down. A move through 3025.75 will signal a resumption of the uptrend.

The minor trend is up. A trade through 2982.00 will change the minor trend to down. This will confirm the shift in momentum to down.

On the upside, the direction is being controlled by a pair of 50% levels at 2992.25 and 3003.25. Trading below these levels is helping to generate a downside bias.

The main range is 2811.00 to 3025.75. Its retracement zone at 2918.25 to 2893.00 is the primary downside target.

Daily Technical Forecast

Given the current price at 2987.50, and the weak tone, the direction of the December E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to the pivot at 2992.25.

Bearish Scenario

A sustained move under 2992.25 will indicate the presence of sellers. The next potential support is a minor bottom at 2982.00, another minor bottom at 2980.75, a short-term uptrending Gann angle at 2978.75 and a long-term uptrending Gann angle at 2971.00.

If 2971.00 fails as support then look for a test of the main bottom at 2958.75. This is a potential trigger point for an acceleration to the downside with the main 50% level at 2918.25 the next major downside target.

Bullish Scenario

Overtaking 2992.25 will signal the presence of buyers. This could lead to a quick test of an uptrending Gann angle at 2998.75 and a pivot at 3003.25. This is a potential trigger point for an acceleration into 3024.50 to 3025.75.