E-mini S&P 500 Index (ES) Futures Technical Analysis – Major Pivot at 3113.75 Controlling Near-Term Direction

December E-mini S&P 500 Index futures are expected to open higher after rebounding from an earlier steep loss. Traders are saying the recovery is being fueled by a report in The Wall Street Journal that said the U.S. plans to delay the implementation of additional tariffs on Chinese goods.

During the pre-market session, the benchmark index plunged after the South China Morning Post said China and the U.S. are unlikely to reach a trade deal this week.

At 14:10 GMT, December E-mini S&P 500 Index futures are trading 3136.50, up 2.00 or +0.07%. Earlier in the session, the index traded as low as 3116.25.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3158.00 will change the main trend to up. A move through 3069.50 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 3151.00 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is 3158.00 to 3069.50. Its 50% level or pivot at 3113.75 is support. It’s also controlling the near-term direction of the index.

The main range is 3020.25 to 3158.00. Its retracement zone at 3089.00 to 3072.75 is support. This area stopped the selling last week at 3069.50.

Daily Technical Forecast

Based on the early price action and the current price at 3136.50, the direction of the December E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 3134.00.

Bullish Scenario

A sustained move over 3134.00 will indicate the presence of buyers. If this move can create enough upside momentum then look for the rally to possibly extend into the next downtrending Gann angle at 3146.00. Overtaking this angle will indicate the buying is getting stronger with the next upside targets coming in at 3149.50 and 3152.00.

The downtrending Gann angle at 3152.00 is the last potential resistance angle before the main top at 3158.00.

Bearish Scenario

A sustained move under 3152.00 will signal the presence of sellers. This could trigger a steep break into the pivot at 3113.75, followed closely by the uptrending Gann angle at 3109.50.

Crossing to the weak side of the downtrending Gann angle at 3110.00 will put the index in a bearish position.