E-mini S&P 500 Index (ES) Futures Technical Analysis – December 7, 2016 Forecast

December E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening. The trade is light ahead of Thursday’s European Central Bank meeting. Investors expect the ECB to announce more stimulus. It could also announce the tapering of its current quantitative easing program, or an end date for the program.

The market is also going through the rollover from the December contract to the March contract. This may explain the lack of liquidity.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2213.75 will signal a resumption of the uptrend. There is no upside objective at this time. A new main bottom was formed at 2179.00. A trade through this price will turn the main trend to down.

The short-term range is 2213.75 to 2179.00. Its 50% level or pivot is 2196.25. This price is controlling the short-term direction of the market.

The intermediate range is 2147.75 to 2213.75. Its retracement zone at 2180.75 to 2173.00. This zone provided support on Monday when the market bottomed at 2179.00.

Forecast

Based on the current price at 2208.75, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 2211.00.

A sustained move over 2211.00 will indicate the presence of buyers with the first objective 2213.75.

A sustained move under 2211.00 will signal the presence of sellers. This could trigger a break into the support cluster at 2196.25 to 2195.00. We could see a technical bounce on the first test of this area. If it fails then look for a sell-off into the next price cluster at 2180.75 to 2180.50.

Watch the price action and read the order flow at 2211.00 today. Trader reaction to this angle will set the tone for the day.