E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 3667.25 to Sustain Upside Momentum

December E-mini S&P 500 Index futures are slightly higher shortly after the cash market opening on Thursday as hopes of a swift COVID-19 vaccine-driven recovery and a new fiscal stimulus package are being dashed by worries over rising coronavirus cases and high unemployment.

At 15:14 GMT, December E-mini S&P 500 Index futures are trading 3674.75, up 7.50 or +0.22%.

In economic news, new jobless-claim filings last week reached their lowest level of the pandemic crisis, providing a sign that hiring is continuing if at a slower pace.

First-time claims for unemployment benefits totaled 712,000 last week, compared with 787,000 a week earlier and the Dow Jones estimate of 780,000, the Labor Department reported Thursday. Continuing claims also fell sharply, dropping 569,000 to 5.52 million.

Regarding the stimulus package, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer issued a joint statement calling on Republicans to work with them on another round of coronavirus relief funding, using a bipartisan proposal from Senate moderates as a starting point.

A 5% jump in Boeing shares is helping to underpin the benchmark index. Buyers boosted the stock after budget airline Ryanair on Thursday ordered 75 additional Boeing 737 MAX jets with a catalogue value of $9 billion, throwing a commercial lifeline to the embattled U.S. planemaker after regulators lifted a 20-month safety ban.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3677.50 signaled a resumption of the uptrend. The main trend changes to down on a move through 3225.00.

A change in trend to down is highly unlikely, but traders should continue to watch for a closing price reversal top to signal the return of sellers. It won’t change the main trend to down, but if confirmed, it could shift momentum to the downside.

The minor trend is also up. A trade through 3592.25 will change the minor trend to down. This will also shift momentum to the downside.

Daily Swing Chart Technical Forecast

Trader reaction to 3667.25 will set the tone in the market into the close on Thursday.

Bullish Scenario

A sustained move over 3667.25 will indicate the presence of buyers. Taking out and sustaining a rally over 3677.50 will indicate the buying is getting stronger. There is resistance at this time as well as price target. The market will go as high as the upside momentum takes it.

Bearish Scenario

A move under 3677.50 will indicate the buying is getting weaker or the selling stronger. A trade through 3667.25 will put the index in a position to form a potentially bearish closing price reversal top. If confirmed by a close under this level then look for a potential 2 to 3 day correction.

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