E-mini S&P 500 Index (ES) Futures Technical Analysis – Direction into Close Hinges on Trader Reaction to 2927.25

E-mini S&P 500 Index futures are trading higher on Thursday, helped by a surge in shares of Apple and Amazon. Other than trading inside yesterday’s range, the index is showing a limited response to yesterday’s U.S. Federal Reserve interest rate hike and monetary policy statement.

At 1828 GMT, December E-mini S&P 500 Index futures are trading 2924.75, up 13.25 or +0.46%. The high for the session is 2932.00 and the low is 2907.50.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending to the downside. A trade through 2947.00 will negate a closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a trade through 2883.50.

The minor trend is down. This confirms the shift in momentum to down. A trade through 2936.00 will change the minor trend to up. This will signal a shift in momentum to the upside.

The main range is 2869.50 to 2947.00. Its retracement zone at 2908.25 to 2899.00 is the main support. This zone stopped the selling at 2907.50 yesterday and earlier today.

The intermediate range is 2883.50 to 2947.00. Its 50% level at 2915.25 is additional support.

The short-term range is 2947.00 to 2907.50. Its 50% level or pivot at 2927.25 is acting like resistance. This level is controlling the price action today. Trader reaction to this level late in the session will determine the direction of the index into the close.

Daily Swing Chart Technical Forecast

Based on the current price at 2924.75 and the earlier price action, the direction of the December E-mini S&P 500 Index futures contract into the close will be determined by trader reaction to 2927.25.

A sustained move under 2927.25 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 2915.25, followed by 2908.25.

If 2907.50 fails as support then look for the selling to strengthen with 2899.00 the next likely target.

A sustained move over 2927.25 will indicate the presence of buyers. This could trigger a surge into 2936.00. Taking out this level could trigger an acceleration to the upside with 2947.00 the next major upside target.

The key number to watch this last hour of trading is 2927.25. This is the major pivot level.