E-mini S&P 500 Index (ES) Futures Technical Analysis – Could Be Diverging from Cash Market Index

December E-mini S&P 500 Index futures are edging higher on Monday with the benchmark cash index reaching an all-time high at the opening bell.

The index was carried higher by last week’s momentum that was fueled by optimism over a batch of strong corporate profit reports, a better-than-expected October labor market report and a dovish Federal Reserve decision. Investors are also celebrating the passage of President Biden’s long-awaited infrastructure bill.

At 16:44 GMT, December E-mini S&P 500 Index futures are trading 4693.75, up 3.50 or +0.07%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4711.75 will signal a resumption of the uptrend. A move through 4260.00 will change the main trend to down.

The minor trend is also up. A trade through 4543.75 will change the minor trend to down. This will also shift to the momentum to down.

The minor range is 4667.50 to 4711.75. The index is currently straddling its pivot at 4689.50.

The second minor range is 4543.75 to 4711.75. Its pivot at 4627.75 is the nearest support.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index into the close on Monday will be determined by trader reaction to 4689.50.

Bullish Scenario

A sustained move over 4689.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 4711.75. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 4689.50 will signal the presence of sellers. The first downside target is Friday’s low at 4667.50. Taking out this level will be a sign of weakness. This could extend the selling into the pivot at 4627.75.