E-mini S&P 500 Index (ES) Futures Technical Analysis – December 14, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The catalyst behind the selling pressure is weaker-than-expected economic data in China and renewed concerns over a weakening Euro Zone economy. China reported industrial output and retail sales growth numbers for November that missed expectations. In Europe, shares fell after the release of weaker-than-forecast IHS Markit Flash Eurozone PMI data.

At 1240 GMT, December E-mini S&P 500 Index futures are trading 2625.25, down 20.25 or -0.76%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on Monday.

A trade through 2814.00 will change the main trend to up. A move through 2583.00 will negate the closing price reversal bottom and signal a resumption of the downtrend. This could lead to a further break into a pair of bottoms at 2562.50 and 2550.00.

The minor trend is also down. A trade through 2686.50 will change the minor trend to up. This will reaffirm the shift in momentum to the upside.

The short-term range is 2583.00 to 2686.50. Its retracement zone is 2634.75 to 2622.50.

The intermediate range is 2814.00 to 2583.00. Its retracement zone is 2698.50 to 2725.75.

A major Fibonacci target is 2701.75.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 2622.50.

Bullish Scenario

A sustained move over 2622.50 will indicate the presence of buyers. The first target is the 50% level at 2634.75. This is a potential trigger point for an acceleration to the upside with targets coming in at 2686.50, followed by a resistance cluster at 2698.50 to 2701.75.

Bearish Scenario

A sustained move under 2622.50 will signal the presence of sellers. This could lead to an acceleration to the downside since the next major target is 2583.00.

Basically, look for an upside bias to develop on a sustained move over 2634.75 and for a downside bias to develop on a sustained move under 2622.50.