E-mini S&P 500 Index (ES) Futures Technical Analysis – December 8, 2016 Forecast

December E-mini S&P 500 Index futures are called flat shortly before the release of the European Central Bank’s monetary policy statement. Yesterday, the index surged to a new all-time high as investors priced in the possibility of additional stimulus from the central bank.

Technical Analysis

The main trend is up according to the daily swing chart. Momentum is also to the upside. However, the index is in the window of time for a closing price reversal top. This chart pattern will indicate the selling is greater than the buying at current price levels but not necessarily an impending change in trend.  A trade through 2179.00 will change the main trend to down.

Forecast

Based on the current price at 2237.25, the direction of the index today will be determined by trader reaction to the steep uptrending angle at 2227.00. This angle, moving up 16 points per day from the 2179.00 main bottom has been guiding the market higher for three days.

If the angle fails as support then it may generate enough downside momentum to challenge the next uptrending angle at 2203.00.

The major uptrending angle comes in at 2188.50. Sentiment will begin to shift to the downside if this angle fails as support.

There is no resistance because we are at all-time highs. Today will be all about momentum and whether buyers can continue to drive this market higher.