E-mini S&P 500 Index (ES) Futures Technical Analysis – Confirming Reversal Top Could Fuel Correction into 2915.25

After hitting a new all-time high on Friday, the December E-mini S&P 500 Index settled lower, posting a potentially bearish closing price reversal top in the process. While this chart pattern may not be signaling a change in trend, it could trigger the start of a 2 to 3 day correction.

December E-mini S&P 500 Index futures settled at 2933.75, down 5.75 or -0.20%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum may be shifting to the downside with the formation of the closing price reversal top. A trade through 2947.00 will negate the closing price reversal top and signal a resumption of the uptrend.

A trade through 2932.00 will confirm the closing price reversal top. This will also indicate the selling is greater than the buying at current price levels.

The short-term range is 2883.50 to 2947.00. If the reversal top is confirmed then look for a possible correction into its 50% level at 2915.25.

The main range is 2869.50 to 2947.00. Its retracement zone at 2908.25 to 2899.00 is the next downside target. Since the main trend is up, buyers could show up on a test of these levels.

Daily Swing Chart Technical Forecast

Based on Friday’s price action and the close at 2933.75, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to 2932.00.

Holding above 2932.00 and sustaining the move will indicate the presence of buyers. This could lead to a retest of 2947.00. Taking out this level will signal a resumption of the uptrend. There is no resistance above this level.

Taking out 2932.00 and sustaining the move will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into the short-term 50% level at 2915.25. Since the main trend is up, look for buyers to show up on the first test of this level.

If 2915.25 fails as support then look for the selling to extend into the next 50% level at 2908.25. Once again, look for buyers to re-emerge on the initial test of this level.

The last line of support before the main bottom at 2883.50 is the Fibonacci level at 2899.00.