E-mini S&P 500 Index (ES) Futures Technical Analysis Forecast – Must Hold 3587.25 to Sustain Upside Bias

December E-mini S&P 500 Index futures ended lower on Monday as investors took profits following a sharp rally in recent weeks that led to the cash benchmark’s best November ever.

Reuters reported that nine out of 11 of the major S&P 500 sectors fell, with the energy index tumbling 5.4% and leading losses, tracking a drop in crude prices. The S&P 500 technology index rose 0.7%, thanks in part to a 2.1% rise in Apple Inc shares.

On Monday, December E-mini S&P 500 Index futures settled at 3623.25.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 3668.00 will reaffirm the uptrend. The main trend will change to down on a move through the nearest swing bottom at 3225.00.

The minor trend is down. It turned down on Monday when sellers took out the last minor bottom at 3613.25. This move shifted momentum to the downside. A trade through 3652.00 will change the minor trend to up. A move through 3655.00 will reaffirm the shift in momentum to the upside.

The minor range is 3668.00 to 3506.50. Its 50% level or pivot at 3587.25 is controlling the near-term direction of the index.

The short-term range is 3225.00 to 3668.00. Its retracement zone at 3446.50 to 3394.25 is the next potential downside target and value zone.

Short-Term Outlook

The price action on Monday suggests the direction of the market this week is likely to be determined by trader reaction to the pivot at 3587.25.

Look for an upside bias as long as 3587.25 holds as support. Taking out a pair of minor tops at 3652.00 and 3655.00 will shift momentum to the upside. This could lead to a test of 3668.00. This is a potential trigger point for an acceleration to the upside.

A downside bias could develop if 3587.25 fails as support. Losses could extend into the minor bottom at 3542.25. If this fails, then look for a drive into another pair of minor bottoms at 3513.00 and 3506.50.

If 3506.50 fails as support then look for the selling to possible extend into the value area at 3446.50 to 3394.25. Since the main trend is up, buyers are likely to come in on a test of this zone.