E-mini S&P 500 Index (ES) Futures Technical Analysis – Crossing to Weakside of 2945.75 Puts Index in Bearish Position

On the downside, if the intraday selling pressure continues then look for it to possibly extend into the minor bottom at 2953.75, followed by a downtrending Gann angle at 2945.75.
James Hyerczyk
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are under pressure at the mid-session on reports that the White House is considering limits on U.S. investment into China. Although it should not be considered an escalation of U.S.-China trade tensions, the timing of the report is definitely souring the mood in the market ahead of the October 10-11 trade talks.

At 17:03 GMT, December E-mini S&P 500 Index futures are trading 2960.50, down 21.00 or -0.70%.

Furthermore, the move is not designed to encourage China to make a trade deal this month, but rather provide protection for U.S. investors. A person familiar with the matter told CNBC that the efforts to curtail American investment in China would be undertaken with the goal of protecting U.S. investors from excessive risk due to lack of regulatory supervision. The White House declined to comment on the report.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2953.75 will negate a closing price reversal bottom at 2953.75 and signal a resumption of the downtrend. The trend will change to up on a move through 3025.75.

The minor trend is also down. A trade through 2995.00 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 3025.75 to 2953.75. Its retracement zone at 2989.50 to 2998.00 stopped the selling on Thursday at 2995.00, setting up the possibility of a secondary lower top.

The main range is 2811.00 to 3025.75. If sellers take out 2953.75 then they may take a run at 2918.25 to 2893.00.

Daily Technical Forecast

Based on the early price action and the current price at 2960.50, the resistance is a downtrending Gann angle at 2985.75, followed by a minor 50% level at 2989.50 and a resistance cluster at 2995.00. This is being formed by a combination of a minor top and the uptrending Gann angle.

On the downside, if the intraday selling pressure continues then look for it to possibly extend into the minor bottom at 2953.75, followed by a downtrending Gann angle at 2945.75.

Crossing to the weak side of the downtrending Gann angle at 2945.75 will put the December E-mini S&P 500 Index in a bearish position. This could trigger an acceleration to the downside with the next target the main 50% level at 2918.25, followed by the uptrending Gann angle at 2903.00 and the main Fibonacci level at 2893.00.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US