E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 3080.00 to Extend Upside Momentum

December E-mini S&P 500 Index futures closed lower on Monday, diverging from the cash market Dow Jones Industrial Average, which hit another all-time high. The index also snapped a three-day winning streak as lingering U.S.-China trade worries and political turmoil in Hong Kong, offset the strength in Boeing, which jumped on news it will resume deliveries of the beleaguered 737 Max jet next month.

On Monday, December E-mini S&P 500 Index futures settled at 3087.50, down 3.00 or -0.10%.

Volume was below average due to the U.S. Veterans Day holiday. U.S. Treasury markets were closed and many of the major market players took to the sidelines.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3097.00 will signal a resumption of the uptrend after two days of sideways price action. The nearest main bottom is 3020.25. A trade through this bottom will change the main trend to down.

The minor trend is also up. The minor trend changes to down on a trade through 3063.00. This will also shift momentum to the downside.

The minor range is 3063.00 to 3097.00. Its 50% level or pivot comes in at 3080.00. This level has influenced the market’s direction the last three sessions.

The main range is 3020.25 to 3097.00. Its retracement zone at 3058.50 to 3049.50 is another downside target. Since the main trend is up, buyers could come in on a test of this area.

Daily Swing Chart Technical Forecast

Based on Monday’s price action and the close at 3087.50, the direction of the December E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the pivot at 3080.00.

Bullish Scenario

A sustained move over 3080.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for buyers to attempt a breakout over 3097.00.

Bearish Scenario

A sustained move under 3080.00 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the minor bottom at 3063.00, followed closely by the short-term 50% level at 3058.50. If this level fails then look for a potential break into the short-term Fibonacci level at 3049.50.

Watch for buyers on the initial test of 3058.50 to 3049.50.