E-mini S&P 500 Index (ES) Futures Technical Analysis – Minor Trend Changes to Down on Trade Through 2980.75

December E-mini S&P 500 Index futures are inching higher shortly after the release of the U.S. Flash Manufacturing PMI and Flash Services PMI reports. The results were mixed with Flash Manufacturing PMI coming in at 51.0, higher than the 50.3 estimate and Flash Services PMI coming in at 50.9, lower than the 51.5 forecast.

At 13:51 GMT, December E-mini S&P 500 Index futures are trading 2994.00, up 4.50 or +0.15%.

Earlier in the session, weaker-than-expected German PMI drove global stock indexes lower, perhaps signaling the need for additional stimulus from the European Central Bank.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 3025.75 on September 13.

A trade through 3025.75 will signal a resumption of the uptrend. The main trend will change to down on a move through 2958.75.

The minor trend is also up. A trade through 2980.75 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 2958.75 to 3025.75. Its 50% level or pivot at 2992.25 is controlling the direction of the index today.

The main range is 2811.00 to 3025.75. If the main trend changes to down then look for a break into its retracement zone at 2918.25 to 2893.00.

Daily Technical Forecast

Based on the early price action and the current price at 2994.00, the direction of the December E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to the pivot at 2992.25.

Bullish Scenario

A sustained move over 2992.25 will indicate the presence of buyers. This could trigger a labored rally with potential upside targets coming in at 3001.75, 3013.75 and 3019.75. The latter is the last potential resistance angle before the 3024.50 minor top and the 3025.75 main top.

Bearish Scenario

A sustained move under 2992.25 will signal the presence of sellers. The first downside target comes in at 2980.75.

Crossing to the weak side of the downtrending Gann angle at 2977.75 will put the index in a weak position with the next target angle coming in at 2963.00. If this angle fails then look for the selling to extend into the main bottom at 2958.75.

The main bottom at 2958.75 is a potential trigger point for an acceleration to the downside with 2918.25 the next major target.