E-mini S&P 500 Index (ES) Futures Technical Analysis – December 2, 2016 Forecast

December E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening. Today’s earlier lower-low created a new main top that helped turn momentum to the downside.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is now down with the formation of a new main top and the closing price reversal top earlier in the week.

The short-term range is 2147.75 to 2213.75. Its retracement zone at 2180.75 to 2173.00 is the first downside target.

A close under 2211.25 will form a weekly closing price reversal top. This could lead to a 2 to 3 week break with 2121.00 to 2099.25 the primary downside target.

Forecast

Based on the current price at 2187.75, the first target is the short-term 50% level at 2180.75. This is followed by the short-term Fib at 2173.00. This price is the trigger point for an acceleration into the uptrending angle at 2156.50.

The daily chart opens up to the downside under 2156.50 with 2121.00 the next major target.

The nearest upside target is the steep downtrending angle at 2197.75. This is followed by additional angles at 2205.75 and 2209.75.

Watch for a technical bounce on the first test of 2180.75 to 2173.00 but be prepared for a sharp break if 2173.00 fails as support.

If there is an intraday rally late in the session then watch the price action at 2211.25 if tested. This price is controlling the weekly trend.