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.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US