E-mini S&P 500 Index (ES) Futures Technical Analysis – December 17, 2018 Forecast

December E-mini S&P 500 Index futures opened the regular session lower on Monday. Program selling related to the three major U.S. indexes entering correction territory for the first time since March 2016 is helping to drive the negative sentiment. Traders are also saying that concerns over a global economic slowdown may be driving the price action.

Daily Technical Analysis

The main trend is down on the daily chart. A trade through 2686.50 will change the trend to up, while a move through 2583.00 will indicate the selling is getting stronger.

Crossing to the weak side of a steep downtrending Gann angle at 2590.50 will be another sign of increased selling pressure.

On the upside, downtrending resistance comes in at 2638.50. This is followed by another downtrending Gann angle at 2662.50.

Daily Technical Forecast

Based on the earlier 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 steep downtrending Gann angle at 2590.50.

Bullish Scenario

Holding above 2590.50 will indicate that buyers are trying to defend the nearest main bottom at 2583.00. If this can generate enough upside momentum then look for a possible drive into the steep downtrending Gann angle at 2638.50.

Bearish Scenario

Crossing to the weak side of the downtrending Gann angle t 2590.50 will signal increasing selling pressure. This could drive the index into the main bottom at 2583.00.

Taking out 2583.00 will reaffirm the downtrend. This could drive the index into a pair of bottoms at 2562.50 and 2550.00.