E-mini S&P 500 Index (ES) Futures Technical Analysis – Major RT at 2748.50 to 2701.50 Controlling Price Action

December E-mini S&P 500 Index futures are trading higher shortly before the close. The same stocks that drove the index lower on Wednesday are driving it higher today. The rally is being fueled by a rebound in shares of J.P. Morgan Chase, which is leading bank stocks higher. Shares of Apple are up 2 percent after hitting bear market territory earlier in the week, helping to boost the tech sector of the benchmark index.

At 1905 GMT, December E-mini S&P 500 Index futures are trading 2725.00, up 26.50 or +0.98%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2603.00 will reaffirm the downtrend. The main trend will change to up when buyers take out the main tops at 2818.00 and 2824.25.

Once again the price action is being controlled by the retracement levels. Based on the current price at 2725.00, the retracement levels suggest the way of least resistance is down. Any rallies are likely to be labored because of layers of retracement levels.

The early price action suggests that support may be forming at a short-term 50% level at 2710.50, a major Fibonacci level at 2701.50 and a short-term Fibonacci level at 2685.00.

Earlier in the session, the market took out all of these levels, however, buyers came in to stop the move.

On the upside, resistance is layered at 2748.50. This is followed by 2775.00 and a cluster of levels at 2815.75, 2818.00 and 2824.25.

The daily chart still indicates there is plenty of room to the downside under 2815.00 with 2603.00 to 2602.75 the major targets.

The Bigger Picture

Looking at the bigger picture, the longer-term direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to 2748.50 and 2701.50. Trading inside this zone will lead to a choppy, two-sided trade.

Look for an upside bias to develop on a sustained move over 2748.50 and for a downside bias to develop on a sustained move under 2701.50.