E-mini S&P 500 Index (ES) Futures Technical Analysis – Approaching Key Area at 2907.25 to 2901.25

Based on the early price action, 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 minor pivot at 2907.25 and the main 50% level at 2901.25.
James Hyerczyk
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The benchmark index broke sharply during the European session as investor optimism ahead of the start of trade talks between the United States and China vanished amid a negative news story from Asia and worries about retaliation over U.S. blacklisting of Chinese firms.

At 13:16 GMT, December E-mini S&P 500 Index futures are trading 2919.25, down 18.25 or -0.62%.

Stocks weakened after the South China Morning Post reported China is toning down its expectations ahead of trade negotiations with the United States. Also after the U.S. expanded its trade blacklist against China’s top artificial intelligence firms on Monday, China’s foreign ministry said to stay tuned for retaliation.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at 2855.00 on October 3.

The main trend will change to up on a trade through 3025.75. A move through 2855.00 will reaffirm the downtrend.

The minor trend is also down. A trade through 2959.50 will change the minor trend to up. This will also reaffirm the shift in momentum.

On the downside, support is the minor pivot at 2907.25 and the major retracement zone at 2901.25 to 2872.00.

The main range is 3025.75 to 2855.00. Its retracement zone at 2940.50 to 2960.50 is resistance. This zone stopped the rally on Monday at 2959.50.

Daily Technical Forecast

Based on the early price action, 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 minor pivot at 2907.25 and the main 50% level at 2901.25.

Bullish Scenario

A sustained move over 2907.25 will indicate the return of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the 50% level at 2940.50, followed by the uptrending Gann angle at 2951.00. Additional resistance comes in at 2957.25, 2959.25 and 2960.50. The latter is the trigger point for an acceleration to the upside.

Bearish Scenario

A failure to hold 2907.25 will signal the selling is getting stronger. This could lead to a test of the uptrending Gann angle at 2903.00 and the main 50% level at 2901.25.

Crossing to the weak side of 2901.25 could trigger an acceleration to the downside with targets coming in at 2879.00 and 2872.00.

A break through 2855.00 will reaffirm the downtrend.

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