E-mini S&P 500 Index (ES) Futures Technical Analysis – Key Support Area 2907.25 to 2901.25

Based on the early price action and the current price at 2917.00, the direction of the December E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the short-term 50% level at 2907.25.
James Hyerczyk
S&P 500 Index
S&P 500 Index

December E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening as conflicting headlines over U.S.-China trade relations helped fuel a volatile two-sided reaction. Prices plunged on a report that Chinese officials would cut short their trade talk visit to Washington later today, but then rebounded after Bloomberg reported the Trump administration was considering granting licenses for some U.S. companies to sell nonsensitive supplies to Huawei.

At 12:56 GMT, December E-mini S&P 500 Index futures are trading 2917.00, down 2.00 or -0.08%.

All we can say at this time is expect volatility as traders are likely to react to a number of headlines throughout the day on the progress of the trade talks. However, we’re not likely to know the truth until both sides make statements. So trade with caution, there is likely to be a lot of fake reports out there today.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2959.50 will change the main trend to up. A move through 2855.00 will signal a resumption of the downtrend.

On the downside, the major support zone is 2901.25 to 2872.00.

The short-term range is 2855.00 to 2959.50. Its 50% level at 2907.25 is additional support.

The main range is 3025.75 to 2855.00. Its retracement zone at 2940.50 to 2960.50 is the next potential upside target. This zone stopped the selling on Monday at 2959.50. Overcoming this zone will help generate a strong upside bias.

Daily Technical Forecast

Based on the early price action and the current price at 2917.00, the direction of the December E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the short-term 50% level at 2907.25.

Bullish Scenario

A sustained move over 2907.25 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for a rally into the uptrending Gann angle at 2935.00.

Overtaking 2935.00 will indicate the buying is getting stronger with the next target the 50% level at 2940.50, followed by a downtrending Gann angle at 2949.75.

A drive through 2949.75 is likely to lead to a test of 2959.50 to 2960.50. The latter is the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 2907.25 will signal the presence of sellers. This could lead to a labored break with targets at 2901.25 and 2895.00.

The market starts to open up to the downside under 2895.00 with the next target areas coming in at 2875.00, 2872.00 and 2855.00.

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