E-mini S&P 500 Index (ES) Futures Technical Analysis – Downside Momentum Targeting 4627.75

December E-mini S&P 500 Index futures are trading slightly lower Tuesday, but remain within striking distance of its all-time high. Investors appear to be taking a breather as they await the release of another key inflation reading Wednesday. The closely watched October consumer price index is expected to show a 0.6% jump compared to the prior month.

At 15:00 GMT, December E-mini S&P 500 Index futures are at 4677.00, down 14.75 or -0.31%.

In economic news, wholesale prices jumped 8.6% in October from a year ago, the hottest annual pace on record in nearly 11 years, the Labor Department said Tuesday. The October producer price index (PPI) rose 0.6% month over month, in line with the Dow Jones consensus estimate.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4711.75 will signal a resumption of the uptrend. A move through 4260.00 will change the main trend to down.

The minor trend is also up. A trade through 4543.75 will change the minor trend to down. This will also shift momentum.

For a second session, the index is trading inside last Friday’s range of 4667.50 to 4711.75. Its pivot comes in at 4689.75.

The minor range is 4543.75 to 4711.75. Its 50% level or pivot is 4627.75.

The short-term range is 4260.00 to 4711.75. If the minor trend changes to down then its retracement zone at 4414.25 to 4344.00 will become the primary downside target area.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index into the close on Tuesday will be determined by trader reaction to 4689.75.

Bullish Scenario

A sustained move over 4689.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a retest of 4711.75. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 4689.75 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to continue into 4667.50.

Taking out 4667.50 will indicate the selling pressure is getting stronger with 4627.75 the next target. Since the main trend is up, buyers could come in on a test of this level. But if it is taken out with strong selling volume then lookout to the downside.