E-mini S&P 500 Index (ES) Futures Technical Analysis – Close Under 4673.25 Will Form Reveral Top

December E-mini S&P 500 Index futures are trading higher at the mid-session even after giving back more than half of its gains. Earlier in the session, the benchmark index hit a record high as data showing strong jobs growth in October, coupled with Pfizer’s COVID-19 pill update, bolstered sentiment about economic growth.

At 17:33 GMT, December E-mini S&P 500 Index futures are at 4682.25, up 9.00 or +0.19%. The high of the session is 4711.75.

Ten of the 11 major S&P sectors advanced, with three of them gaining more than 1% each. In stock related news, Pfizer Inc surged 7.9% after the drugmaker’s experimental antiviral pill for COVID-19 cut by 89% the risk of developing severe disease. Meanwhile, shares of Merck slipped 9.6%, dragging the S&P healthcare sector.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 4711.75 will signal a resumption of the uptrend. A move through 4260.00 will change the main trend to down. The formation of a closing price reversal top will indicate the selling is greater than the buying at current price levels. This chart pattern will shift momentum to the downside.

The minor trend is 4543.75 to 4711.75. The minor trend changes to down on a trade through 4543.75. This will also shift momentum to the downside.

The minor range is 4543.75 to 4711.75. Its 50% level or pivot at 4627.75 is the first target. This is followed by another 50% level at 4514.50, followed by a retracement zone at 4585.75 to 4432.50.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index into the close on Friday will be determined by trader reaction to 4673.25.

Bullish Scenario

A sustained move over 4673.75 will indicate the buying is getting stronger. This could trigger a rally into 4711.75. Taking out this intraday high could trigger an acceleration to the upside.

Bullish Scenario

A sustained move under 4673.75 will signal the presence of sellers. If this move creates enough downside momentum could trigger a steep break into the pivot at 4627.75.

Side Notes

A close under 4673.75 will form a potentially bearish closing price reversal top. This won’t change the main trend to down, but if confirmed, it could lead to the start of a 2 to 3 day counter-trend break.