E-mini S&P 500 Index (ES) Futures Technical Analysis – Early Strength Over 4697.25, Weakness Under 4685.00

December E-mini S&P 500 Index futures jumped on Tuesday, with the technology sector leading gains, as investors piled back into tech heavyweights and semiconductors in particular after Intel announced plans to take its self-driving car unit public.

The S&P tech sector saw its best daily percentage gain since early November of last year, while the Philadelphia Semiconductor Index posted its biggest rise since early March of this year. Both indexes ended at record highs.

On Tuesday, December E-mini S&P 500 Index futures settled at 4685.00, up 95.00 or +2.03%. The S&P 500 ETF Trust (SPY) ETF finished at $468.25, up $9.46 or +2.06%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 4717.00 will change the main trend to up. A trade through 4740.50 will reaffirm the uptrend. A move through 4492.00 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through 4697.25 will indicate the momentum is getting stronger.

The short-term range is 4740.50 to 4492.00. The market is trading on the strong side of its 50% level at 4616.25, making it support.

The minor range is 4492.00 to 4697.25. Its 50% level at 4594.50 is additional support. It will move up as the index moves higher.

The major support zone is 4500.25 to 4443.50. This area stopped the selling at 4492.00 on December 3.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index early Wednesday is likely to be determined by trader reaction to 4685.00.

Bullish Scenario

A sustained move over 4685.00 will indicate the presence of buyers. Taking out 4697.25 will indicate the buying is getting stronger with the next target 4717.00.

Taking out 4717.00 will change the main trend to up. This could trigger an acceleration to the upside with the all-time high at 4740.50 the next major target price.

Bearish Scenario

A sustained move under 4685.00 will signal the presence of sellers. If this move creates enough downside momentum the look for the selling to possibly extend into the pair of pivots at 4616.25 and 4594.50.