E-mini S&P 500 Index (ES) Futures Technical Analysis – Facing Wall of Resistance, Vulnerable to Steep Break

Demand for risky assets is still the main price driver. However, the light volume suggests rallies are going to be a chore until investors get some clarity over the partial trade deal between the United States and China.
James Hyerczyk
E-mini S&P 500 Index Up

December E-mini S&P 500 Index futures are trading higher on Thursday as we approach the cash market close. The trade was a little lackluster for a fourth session despite the index hitting its highest level since September 24.

The upside bias was primarily driven by strong earnings and the news of a deal between the European Union and the U.K. on Brexit. However, that was early in the session. After that the index primarily treaded water as concerns over U.S.-China trade relations and the strength of the U.S. economy continued to weigh on demand for equities.

At 19:33 GMT, December E-mini S&P 500 Index futures are trading 3000.25, up 8.75 or +0.28%.

Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early Thursday when buyers took out 3003.25.

The main trend will change to down on a trade through 2881.75. That’s highly unlikely, however. Nonetheless it is still vulnerable to the downside. Furthermore, as the index approaches its all-time high, traders should start watching for signs of topping action like an intraday or daily closing price reversal top.

The short-term range is 2881.75 to 3008.00. Its 50% level or pivot is 2944.75. The major support is still 2918.25 to 2893.00.

Daily Swing Chart Technical Forecast

Demand for risky assets is still the main price driver. However, the light volume suggests rallies are going to be a chore until investors get some clarity over the partial trade deal between the United States and China.

The deal over Brexit between the UK and EU also carries a big “if” since it still has to be approved by Parliament. Furthermore, the according to reports, Northern Ireland’s Democratic Union Party (DUP) said their earlier position of rejecting the fresh deal was unchanged.

The bullish traders are going to have to claw through minor tops at 3012.25 and 3024.50 in order to get to the main tops at 3025.75 and 3032.25.

On the downside, however, sellers have a straight shot at the 50% level at 2944.75. There is risk chasing this market higher.

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