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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.

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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.

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