E-mini S&P 500 Index (ES) Futures Technical Analysis – Could Be Setting Up for Weekly Closing Price Reversal Bottom

December E-mini S&P 500 Index futures are trading higher for the week after a successful test of the May bottom at 2602.75. This puts the index in a position to post a weekly closing price reversal bottom. The chart pattern will not change the trend to up, but it could lead to the start of a 2 to 3 week counter-trend rally.

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart. A trade through 2603.00 will signal a resumption of the downtrend. A trade through 2947.00 will change the main trend to up.

The index is currently trying to grind through a series of retracement levels. This means that any rally is likely to be labored until buyers can clear the area.

The contract range is 2496.00 to 2947.00. The market is currently testing its retracement zone at 2721.50 to 2668.25. This zone is controlling the longer-term direction of the index.

The main range is 2550.00 to 2947.00. Its retracement zone at 2748.50 to 2701.75 is also being tested.

The short-term range is 2947.00 to 2603.00. Its retracement zone at 2775.00 to 2815.50 is the primary upside target.

Since the main trend is down, look for sellers on the initial tests of the retracement zones. They are going to try to form a secondary lower top.

Weekly Swing Chart Technical Forecast

With the December E-mini S&P 500 Index currently in a position to form a weekly closing price reversal bottom, the key level to watch the rest of the week is 2669.50.

Bullish Scenario

A sustained move over 2669.50 will indicate the presence of buyers. This could lead to a labored rally with potential resistance levels layered at 2703.00, 2721.50, 2749.75, 2775.00 and 2815.50.

The trigger point for an acceleration to the upside is 2815.50.

Bearish Scenario

A sustained move under 2669.50 will signal the presence of sellers. This could lead to a quick test of 2668.25.

The weekly chart opens up to the downside under 2668.25. This could trigger another plunge into this week’s low at 2603.00, followed by bottoms at 2602.75, 2562.50 and 2550.00.