E-mini S&P 500 Index (ES) Futures Technical Analysis – Main Trend Down, but Momentum Shifted to Upside

December E-mini S&P 500 Index futures posted a strong performance on Wednesday before backing off from its highs into the close. The two-day rally has been impressive, but there is still a ways to go before the trend changes to up. Momentum did shift to the upside, however, a pair of resistance zones proved to be strong resistance.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 2824.25 will change the main trend to up. A move through 2603.00 will signal a resumption of the downtrend.

The minor trend is up. It turned up on Wednesday when buyers took out the last swing top at 2707.00.

Helping to provide the resistance on Wednesday was a major retracement zone at 2748.50 to 2701.75.

The short-term range is 2824.25 to 2603.00. Its retracement zone at 2713.75 to 2739.75 also provided resistance.

The main range is 2947.00 to 2603.00. Its retracement zone at 2775.00 to 2815.50 is the primary upside target.

The retracement levels have to be thought of as resistance as long as the main trend is down. Buyers are going to have to chew through resistance before the main trend changes to up so expect to see a labored rally.

Daily Swing Chart Technical Forecast

Based on Wednesday’s price action, the direction of the December E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to the major Fibonacci level at 2701.75.

A sustained move over 2701.75 will indicate the presence of buyers. This could lead to a labored rally with initial targets at 2713.75, 2739.75 and 2748.50.

Taking out 2748.50 could trigger an acceleration to the upside with 2775.00 the next upside target. This is another trigger point for a potential acceleration into the main Fibonacci level at 2815.50. This is the last resistance before the 2824.25 main top.

A sustained move under 2701.50 will signal the presence of sellers. The daily chart is wide open to the downside under this level with 2603.00 to 2602.75 the next major downside targets.