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E-mini S&P 500 Index (ES) Futures Technical Analysis – Close Under 3087.50 Forms Closing Price Reversal Top

Since the index posted a new higher-high during a prolonged uptrend, the direction of the market the rest of the session on Tuesday is likely to be determined by trader reaction to yesterday’s close at 3087.50.
James Hyerczyk
E-mini S&P 500 Index Up

December E-mini S&P 500 Index futures are trading higher at the mid-session on Tuesday after hitting an all-time higher earlier in the session. The index was boosted by strong gains in Disney and Facebook shares. However, some traders said there’s a lot of optimism in the market with very few traders willing to short even with stocks at extremely high levels.

At 19:00 GMT, December E-mini S&P 500 Index futures are at 3095.75, up 8.25 or +0.26%.

The index is also being supported by optimism over a potential trade deal, a better-than-expected earnings season and expectations of a strong holiday shopping season. President Trump helped generate some upside momentum when he hinted at Chinese enthusiasm for a trade deal.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Tuesday when buyers took out last week’s high at 3097.00. A trade through 3020.25 will change the main trend to down.

The minor trend is also up. A move through 3063.00 will change the minor trend to down. This will shift momentum to the downside.

The new minor range is 3063.00 to 3102.00. Its 50% level or pivot at 3082.50 stopped the selling earlier in the session.

The second minor range is 3020.25 to 3012.00. Its 50% level comes in at 3061.00. This level is potential support.

Daily Technical Forecast

Since the index posted a new higher-high during a prolonged uptrend, the direction of the market the rest of the session on Tuesday is likely to be determined by trader reaction to yesterday’s close at 3087.50.

Bullish Scenario

A sustained move over 3087.50 will indicate the presence of buyers. If this is able to create enough upside momentum later in the session, then look for buyers to make a run at the intraday high at 3102.00. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 3087.50 will signal the presence of sellers. The first target is an uptrending Gann angle at 3084.25, followed by a 50% level at 3082.50 and another uptrending Gann angle at 3079.00.

Since the main trend is up, buyers could come in on tests of those levels. However, if 3079.00 fails as support then look for an acceleration to the downside with potential targets an uptrending Gann angle at 3065.75, a minor bottom at 3063.00 and a 50% level at 3061.00.

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