E-mini S&P 500 Index (ES) Futures Technical Analysis – Minimum Downside Target Zone 2603.00 to 2602.75

Based on the current price action, a trade through 2621.25 will indicate the selling is getting stronger. If this generates enough downside momentum then look for the selling to extend into a potential support cluster at 2603.00 to 2602.75.
James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are trading sharply lower shortly before the close. The move is being fueled by a geopolitical event and more concerns over a slowing U.S. economy. Traders are also taking profits and paring positions ahead of Friday’s U.S. Non-Farm Payrolls report. Sellers took control early Thursday, following the arrest of the CFO from Hauwei, one of China’s most important tech companies. This raised concerns over a potential escalation of the U.S.-China trade dispute.

At 1855 GMT, December E-mini S&P 500 Index futures are trading 2663.25, down 38.50 or -1.43%.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was confirmed when sellers took out the previous main bottom at 2626.00 earlier today. The next downside targets are a pair of main bottoms at 2603.00 and 2602.75. The latter is the trigger point for an acceleration to the downside with potential main bottom targets at 2562.50 and 2550.00.

Daily Technical Forecast

Based on the current price action, a trade through 2621.25 will indicate the selling is getting stronger. If this generates enough downside momentum then look for the selling to extend into a potential support cluster at 2603.00 to 2602.75.

Taking out 2602.75 could drive the index into another support zone at 2562.50 to 2550.00.

Holding above 2621.25 will indicate the selling is getting weaker, or the buying is getting stronger. There is room to the upside, but it’s going to take a huge surge in buying volume to generate the momentum needed to challenge the nearest downtrending Gann angle at 2686.00.

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