Advertisement
Advertisement

E-mini S&P 500 Index (ES) Futures Technical Analysis – Move Through 4366.00 Will Target 4399.75 – 4432.75

By:
James Hyerczyk
Updated: Oct 7, 2021, 08:17 UTC

The direction of the December E-mini S&P 500 Index into the close on Tuesday is likely to be determined by trader reaction to 4366.00.

E-mini S&P 500 Index

In this article:

December E-mini S&P 500 Index futures are trading higher shortly after the mid-session on Tuesday. The move is being driven by a rebound in growth stocks, led by a surge in Microsoft and Apple. Despite today’s strength, the price action could remain choppy as investors awaited monthly payrolls data on Friday that could influence the Fed’s decision on when to scale back massive monetary stimulus.

At 18:40 GMT, December E-mini S&P 500 Index futures are trading 4537.00, up 65.75 or 1.53%.

Ten of the 11 major S&P 500 sector indexes rose, with financials, communication services and technology each up more than 2%.

Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum appears to be ready to shift to the upside with the formation of a potentially bullish closing price reversal bottom on October 1.

A trade through 4260.00 will negate the closing price reversal bottom and signal a resumption of the downtrend.

A move through 4365.75 will confirm the closing price reversal bottom. This won’t change the main trend to up, but it could trigger the start of a 2 to 3 day counter-trend rally. The main trend will change to up on a trade through 4472.00.

The main range is 4117.00 to 4539.50. Earlier today, the index straddled its retracement zone at 4328.25 to 4278.50 for the fourth straight session. This area is the value zone controlling the near-term direction of the index.

The minor range is 4472.00 to 4260.00. Its 50% level or pivot at 4366.00 is acting like resistance, but it’s also a potential trigger point for an acceleration to the upside.

The short-term range is 4539.50 to 4260.00. Its retracement zone at 4399.75 to 4432.75 is the primary upside target.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index into the close on Tuesday is likely to be determined by trader reaction to 4366.00.

Bullish Scenario

A sustained move over 4366.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the short-term retracement zone at 4399.75 to 4432.75.

The short-term retracement zone is the last potential resistance before the main top at 4472.00.

Bearish Scenario

A sustained move under 4366.00 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 4328.25.

If 4328.25 fails to hold then look for a retest of 4278.50.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement