E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 3431.75 to Sustain Upside Momentum

December E-mini S&P 500 Index futures are trading higher late in the session on Friday, setting up the benchmark index for its second straight weekly gain on hopes of more fiscal aid and growing expectations of a Democratic victory in next month’s presidential election.

At 18:57 GMT, December E-mini S&P 500 Index futures are at 3464.25, up 26.75 or +0.78%.

Some of the S&P 500 sectors have started pricing in a higher probability of a Biden victory. Traders are saying that investors started to digest the possibility of Biden winning the November 3 election after a fractious debate last month led to a jump in his lead over Trump in several national polls.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high. The main trend is safe for now. A trade through 3198.00 will change the main trend to down.

The minor trend is up. A trade through 3330.50 will change the minor trend to down. This is followed by a pair of minor bottoms at 3300.25 and 3291.25.

Daily Swing Chart Technical Forecast

The daily chart indicates there is plenty of room to the upside with no actual resistance until 3576.25. Strong upside momentum could trigger an acceleration to the upside, while steady momentum should lead to a uniform rally into this level.

Look for the upside bias to continue as long as the index can hold 3431.75. We would like to see buyers come in to defend this level.

If 3431.75 fails as support then look for a support base to form between this price and the 50% level at 3387.00.