E-mini S&P 500 Index (ES) Futures Technical Analysis – Momentum Shift Could Lead to Test of 3053.00 to 3052.25

Based on the early price action and the current price at 3071.25, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to Tuesday’s close at 3072.00.
James Hyerczyk
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are trading lower shortly after the cash market opening on Wednesday. Throughout the pre-market session, the index posted a mostly sideways trade after failing to follow-through to the downside following yesterday’s potentially bearish closing price reversal top chart pattern.

Fundamentally, earnings season is winding down and the lack of fresh news over U.S.-China trade relations may be creating enough uncertainty to encourage some light profit-taking. Investors could also be having trouble with valuations after the month-long rally.

At 14:30 GMT, December E-mini S&P 500 Index futures are trading 3071.25, down 0.75 or -0.03%.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower following Tuesday’s closing price reversal top and today’s subsequent confirmation of the chart pattern.

A trade through 3085.75 will negate the chart pattern and signal a resumption of the uptrend. The main trend will change to down on a trade through 3020.25.

The formation of the closing price reversal top doesn’t mean the trend is changing to down, but it could trigger the start of a 2 to 3 day counter-trend trade. This will alleviate some of the upside pressure.

The short-term range is 3020.25 to 3085.75. Its 50% level or pivot at 3053.00 is the first downside target. Since the main trend is up, buyers are likely to show up on the first test of this level.

Daily Technical Forecast

Based on the early price action and the current price at 3071.25, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to Tuesday’s close at 3072.00.

Bearish Scenario

A sustained move under 3072.00 will indicate the presence of sellers. If this move can generate enough downside momentum then look for the selling to possibly extend into the support cluster at 3053.00 to 3052.25. Look for a technical bounce on the first test of this area. This is followed closely by another uptrending Gann angle at 3047.00.

Taking out 3047.00 could trigger a plunge into the next uptrending Gann angle at 3033.75.

Bullish Scenario

A sustained move over 3072.00 will signal the presence of buyers. The first target is an uptrending angle at 3084.25. Overcoming this angle will indicate the buying is getting stronger. Taking out 3085.75 will signal a resumption of the uptrend. This could also trigger an acceleration to the upside.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.