E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 2748.50 to Set-Up Rally to 2829.75Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the main 50% level at 2748.50.
The E-mini S&P 500 Index is trading higher early Tuesday as prices continue to consolidate following last week’s steep sell-off. Investors are trying to build a support base inside the 50% to 61.8% zone of this year’s trading range. If successful then we should see a retracement of the sell-off from 2947.00 to 2712.25. Its retracement zone should be the next major battle ground because short-sellers are going to try to form a secondary lower top.
At 0555 GMT, December E-mini S&P 500 Index futures are trading 2760.00, up 11.00 or +0.40%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 2712.25 will signal a resumption of the downtrend. A move through 2696.75 will reaffirm the downtrend. The last main top is 2947.00.
The main range is 2550.00 to 2947.00. Its retracement zone is 2748.50 to 2701.75. Last week’s low formed inside this zone.
If 2947.00 to 2712.25 is the short-term range then its retracement zone at 2829.75 to 2857.25 will become the primary upside target.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the main 50% level at 2748.50.
A sustained move over 2748.50 will indicate the presence of buyers. If the move creates enough upside momentum then look for a possible acceleration to the upside with 2829.75 to 2857.25 the next major upside target.
A sustained move under 2748.50 will signal the return of sellers. This could trigger a break into 2712.25, followed by the Fibonacci level at 2701.75 and the main bottom at 2696.75.
The main bottom at 2696.75 is the next trigger point for an acceleration to the downside with 2602.75 the next major downside target.