E-mini S&P 500 Index (ES) Futures Technical Analysis – December 06, 2017 Forecast

December E-mini S&P 500 Index futures are called lower based on the pre-market trade. The chart pattern indicates there may be enough downside momentum to challenge a major retracement zone today.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at 2665.25 on December 4.

A trade through 2665.25 will negate the chart pattern and signal a resumption of the uptrend. A trade through 2605.00 will change the minor trend to down.

The minor range is 2605.00 to 2665.25. Its retracement zone is 2635.25 to 2628.00. This zone is controlling the short-term direction of the index. The market is currently trading below this zone, putting it in a weak position.

The main range is 2555.50 to 2665.25. If the selling pressure continues then look for a test of its retracement zone at 2610.25 to 2597.50.

Daily Technical Forecast

Based on the early price action, the direction of the index the rest of the session will be determined by trader reaction to the short-term Fibonacci level at 2628.00.

A sustained move under 2628.00 will signal the presence of sellers. This could lead to an extension of the break into an uptrending angle at 2611.50, followed by a 50% level at 2610.25. We could see a technical bounce on the first test of this area.

If 2610.25 fails as support then look for a move into 2605.00, followed by 2597.50.

A sustained move over 2628.00 will indicate the presence of buyers. This could lead to a fast move into a downtrending angle at 2633.25, followed by a 50% level at 2635.25.

Taking out 2635.25 could trigger an acceleration into the next downtrending angle at 2649.25.

Since the main trend is up, watch for the return of buyers on a test of 2610.25 to 2597.50.