E-mini S&P 500 Index (ES) Futures Technical Analysis – In Position to Challenge All-Time High; Still Vulnerable to Reversal Top

Based on the early price action and the current price at 3012.25, the direction of the December E-mini S&P 500 Index futures contract on Tuesday is likely to be determined by trader reaction to Monday’s close at 3006.50.
James Hyerczyk
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are trading higher early Tuesday, following through to the upside after posting a solid performance the previous session. Traders said optimism around U.S.-China trade talks as well as the corporate earnings season were primarily behind the strong upside momentum.

The S&P 500 cash market notched its first close above 3,000 since September 18. The benchmark index could reach this week an all-time high set in July. As of Monday’s close at 3006.72, the broad index is just 0.7% from hitting 3027.98, the record from July 26.

At 04:40 GMT, December E-mini S&P 500 Index futures are trading 3012.25, up 5.75 or +0.19%.

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 earlier today when buyers took out the October 17 main top at 3008.00 and the September 24 minor top at 3012.25.

The main trend will change to down on a move through the last swing bottom at 2881.75. This is highly unlikely. However, the index is up eight session from this bottom, which puts it inside the window of time to form a potentially bearish closing price reversal top. This pattern is likely to indicate profit-taking at current price levels, rather than a change in trend.

The minor trend is also up. A trade through 2975.00 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 2881.75 to 3014.25. Its 50% level at 2948.00 is potential support. As the market moves higher, this 50% level will also move higher.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 3012.25, the direction of the December E-mini S&P 500 Index futures contract on Tuesday is likely to be determined by trader reaction to Monday’s close at 3006.50.

Bullish Scenario

A sustained move over 3006.50 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for buyers to take a run at the two major tops at 3025.75 and 3032.25.

Bearish Scenario

A sustained move under 3006.50 will signal the presence of sellers. This will put the index in a position to form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction with the first target the minor bottom at 2975.00.

Taking out 2975.00 will shift momentum to the downside. This could help extend the selling into the 50% level at 2948.00.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US