E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 4556.25 to Sustain Upside Momentum

December E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. The benchmark was lifted during the pre-market session by shares of Ford which jumped more than 9% on blockbuster earnings while also raising guidance. The market will be getting more big earnings news later today, with tech giant Amazon and Apple reporting after the closing bell.

At 13:34 GMT, December E-mini S&P 500 Index futures are trading 4568.25, up 23.75 or +0.52%.

Investors appear to be shrugging off a disappointing report on U.S. economic growth. GDP growth for the third-quarter came in at 2.0%, below the 2.8% expected. The reading marks a slowdown from 6.7% growth in the second quarter.

On a more positive note for the economy, weekly initial jobless claims came in at 281,000. Economists surveyed by Dow Jones were expecting 289,000 claims.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4590.00 will signal a resumption of the uptrend. A move through 4260.00 will change the main trend to down.

The minor range is 4522.50 to 4590.00. The index is currently straddling its pivot at 4556.25.

Other prices to note are last week’s close at 4536.50 and the low of the week at 4522.50.

A second minor range is 4317.25 to 4590.00. If the index turns lower for the week and takes out this week’s low at 4522.50, we could see an acceleration into its pivot at 4453.50.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to the pivot at 4556.25.

Bullish Scenario

A sustained move over 4556.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the record high at 4590.00. This price is a potential trigger point for an acceleration to the upside since there is no resistance.

Bearish Scenario

A sustained move under 4556.25 will signal the presence of sellers. Taking out yesterday’s low at 4543.75 will indicate the selling is getting stronger. This could trigger a sharp break into 4536.50 and 4522.50.

A trade through 4522.50 could trigger an acceleration to the downside since there is no major support until 4453.50.