E-mini S&P 500 Index (ES) Futures Technical Analysis – Bullish but Vulnerable to Closing Price Reversal Top

December E-mini S&P 500 Index futures reached a new record high on Monday as investor sentiment was lifted by optimism around a potential U.S.-China trade deal. Helping to drive the index higher is last week’s third rate cut this year by the U.S. Federal Reserve and strong U.S. jobs data as reported by the Labor Department.

At 14:52 GMT, December E-mini S&P 500 Index futures are trading 3079.25, up 16.00 or +0.52%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3020.25 will change the main trend to down.

Since the index is at all-time highs, there is no true resistance. However, due to the prolonged move up in terms of price and time, today’s session begins with the index in the window of time for a potentially bearish closing price reversal top.

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 Monday is likely to be determined by trader reaction to Friday’s close at 3063.25.

Bullish Scenario

A sustained move over 3063.25 will indicate the presence of buyers. Extending the rally over today’s intraday high at 3083.75 will indicate the buying is getting stronger.

Bearish Scenario

A sustained move under 3063.25 will signal the presence of sellers. This will also turn the index lower for the session with the first potential downside target an uptrending Gann angle at 3052.25. This is followed closely by another uptrending Gann angle at 3031.00.

The selling begins to open up under 3031.00 with the main bottom at 3020.25 the next target, followed by an uptrending Gann angle at 3017.75.

Side Notes

A close under 3063.25 will produce a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.