E-mini S&P 500 Index (ES) Futures Technical Analysis – Inside Major Retracement Zone at 4328.25 – 4278.50

December E-mini S&P 500 Index futures closed sharply lower on Thursday, putting the benchmark in a position to take out last week’s two-month low. The market also finished just above a key technical support level that could trigger the start of an acceleration to the downside.

On Thursday, December E-mini S&P 500 Index futures settled at 4297.75, down 52.00 or -1.21%.

The weak close suggests there are still sellers in the market, which means the downside pressure will resume on Friday.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4293.75 will signal a resumption of the downtrend. A move through 4472.00 will change the main trend to up.

The main range is 4117.00 to 4539.50. The index closed inside its retracement zone at 4328.25 to 4278.40. This zone stopped the selling at 4293.75 on September 20. This zone is controlling the near-term direction of the index.

The minor range is 4293.75 to 4472.00. Its 50% level or pivot at 4383.00 is the nearest upside target and potential resistance level.

The short-term range is 4539.50 to 4293.75. Its retracement zone at 4416.75 to 4445.75 is the key resistance area. This area is controlling the upside direction. It helped form a potentially bearish secondary lower top, which is usually an indication that lower prices are coming.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to 4328.25 and 4278.50.

Look for a bullish tone to develop on a sustained move over 4328.25 with nearby targets 4383.00 and 4416.75.

Look for the bearish tone to continue on a sustained move under 4278.50. If this move attracts enough selling pressure then look for the move to possibly extend into the next main bottom at 4214.50. If this level fails as support then look for the selling pressure to increase with 4117.00 the next target.