E-mini S&P 500 Index (ES) Futures Technical Analysis – Could Surge on Late Session Move Through 4366.00
December E-mini S&P 500 Index futures are trading nearly flat at the mid-session on Tuesday after recovering most of its earlier losses. The catalysts behind the two-sided price action appears to be energy prices which are exacerbating concerns about inflation, and lingering worries about China’s property sector.
At 14:00 GMT, December E-mini S&P 500 Index futures are trading 4347.25, down 4.00 or -0.09%.
Third-quarter earnings season, which begins this week, will provide clues on how companies are faring with price increases. Some of the U.S.’s biggest financial firms, including JPMorgan Chase and BlackRock, are set to kick off the reporting season Wednesday.
In economic news, U.S. Data of job openings and labor turnover for August dropped to 10.4 million, missing forecasts of 10.9 million.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 4260.00 will signal a resumption of the downtrend. A move through 4472.00 will change the main trend to up.
The minor trend is also down. A trade through 4421.50 will change the minor trend to up. This will confirm the shift in momentum.
The main range is 4117.00 to 4539.50. Its retracement zone at 4328.25 to 4278.50 is support. This area was successfully tested at 4317.25 earlier in the session.
The minor range is 4472.00 to 4260.00. Its 50% level or pivot at 4366.00 is resistance.
The short-term range is 4539.50 to 4260.00. Its retracement zone at 4399.75 to 4432.75 is the key resistance zone to watch. It stopped the rally at 4421.50 on October 7.
Daily Swing Chart Technical Forecast
The direction of the December E-mini S&P 500 Index into the close on Monday is likely to be determined by trader reaction to 4366.00.
A sustained move over 4366.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 4399.75, followed by 4421.50 and 4432.75.
A sustained move under 4366.00 will signal the presence of sellers. If this move generates enough downside momentum then look for a retest of 4328.25, followed by 4317.25.
A new low late in the session could trigger an acceleration into 4278.50, followed by 4260.00.