E-mini S&P 500 Index (ES) Futures Technical Analysis – Bullish Tone on Sustained Move Over 3308.75The direction of the December E-mini S&P 500 Index into the close on Monday is likely to be determined by trader reaction to the pivot at 3308.75.
December E-mini S&P 500 Index futures are trading sharply higher shortly after the cash market opening on Monday following the longest losing streak in a year for the benchmark, with investors piling into shares of beaten-down sectors, including banks and travel. Investors continue to add on to last week’s strong performance in heavyweight technology issues.
At 14:02 GMT, December E-mini S&P 500 Index futures are trading 3328.75, up 41.50 or 1.23%.
Daily Swing Chart 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 on September 24 and its subsequent confirmation on Friday.
A trade through 3198.00 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend changes to up on a trade through 3419.50.
The main support zone is 3246.25 to 3168.50. This area stopped the selling at 3198.00 on September 24.
The minor range is 3419.50 to 3198.00. The market is currently trading on the strong side of its 50% level at 3308.75.
The short-term range is 3576.25 to 3198.00. Its retracement zone at 3387.25 to 3431.75 is the next potential upside target area.
Daily Swing Chart Technical Forecast
Based on the early price action
A sustained move over 3308.75 will indicate the presence of buyers. If this move creates enough upside momentum over the near-term then we could see a drive into the short-term retracement zone at 3387.25 to 3431.75. Inside this zone is the main top at 3418.50. A trade through this level will change the main trend to up.
A sustained move under 3308.75 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the main 50% level at 3246.25.