E-mini S&P 500 Index (ES) Futures Technical Analysis – Charts Show No Major Resistance Until 4539.50
December E-mini S&P 500 Index futures are up sharply late in the session on Tuesday as upbeat results from Johnson & Johnson and Travelers fired up risk appetite, after big banks kicked off the third-quarter reporting period on a positive note last week.
The benchmark S&P 500 Index is now just 0.7% away from a record high hit in early September, with investors hoping that a flow of better-than-expected earnings reports will push the market to new highs despite concerns about an eventual tightening of monetary policy.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The main trend changed to up on Friday when buyers took out the previous main top at 4472.00. There is now swing chart resistance until the September 3 main top at 4539.50. The uptrend is also safe from a change in trend with the nearest swing bottom coming in at 4260.00.
The minor trend is also up. A trade through 4317.25 will change the minor trend to down. This will also shift momentum to down.
The short-term range is 4539.50 to 4260.00. The index is currently trading on the bullish side of its retracement zone at 4432.75 to 4399.75, making the area new support.
The main range is 4117.00 to 4539.50. Its retracement zone at 4328.25 to 4278.50 is the major support area.
Daily Swing Chart Technical Forecast
The direction of the December E-mini S&P 500 Index into the close on Monday is likely to be determined by trader reaction to 4477.50.
A sustained move over 4477.50 will indicate the presence of buyers. Taking out the intraday high at 4510.25 will indicate the buying is getting stronger.
The daily chart indicates there is plenty of room to the upside with 4539.50 the next major target.
A close under 4477.50 will form a potentially bearish closing price reversal top. If confirmed on Wednesday, this could trigger the start of a 2 to 3 day correction.