E-mini S&P 500 Index (ES) Futures Technical Analysis – In Position to Turn Lower for Week

Watch the price action and read the order flow on a test of last week’s close at 3020.50. A weekly closing price reversal top could trigger the start of a 2 to 3 week correction.  
James Hyerczyk
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are trading lower on Thursday as renewed U.S.-China trade war concerns encouraged investors to lighten up on the long-side. These worries overshadowed another day of strong earnings reports.

Bloomberg News reported Thursday, citing unnamed sources, that Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The report added Chinese officials are concerned about President Donald Trump’s “impulsive nature” and the risk of him backing out of any kind of deal.

At 14:25 GMT, December E-mini S&P 500 Index is trading 3027.25, down 20.50 or -0.67%.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3055.00 will signal a resumption of the uptrend. A move through 3023.25 will shift momentum to the downside.

The minor trend is also up. A trade through 3023.25 will change the minor trend to down.

Trading below the previous all-time high at 3032.25 also indicates the buying is getting weaker or the selling is getting stronger.

Trading below last week’s close at 3020.50 will put the index in a position to form a potentially bearish weekly closing price reversal top.

Daily Technical Forecast

Taking out yesterday’s low at 3023.25 will give the index a downside bias. This could trigger a break into an uptrending Gann angle at 3015.00. We could see a technical bounce on the first test of this angle.

If 3015.00 fails as support then look for the selling to extend into the next uptrending Gann angle at 3001.75.

Taking out 3001.75 could trigger an acceleration to the downside with the next potential targets a pair of minor bottoms at 2982.00 and 2975.00, followed by a 50% target at 2968.25.

Side Notes

Watch the price action and read the order flow on a test of last week’s close at 3020.50. A weekly closing price reversal top could trigger the start of a 2 to 3 week correction.

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