E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 4558.00 to Sustain Upside Momentum

December E-mini S&P 500 Index futures are called higher on Tuesday based on the premarket trade as investors await a slew of major technology earnings report.

At 13:10 GMT, the benchmark index is trading 4575.50, up 17.50 or +0.38%. Earlier in the session, the futures contract hit a record high.

In stock related news, shares of social media giant Facebook ticked 2.3% higher in premarket trading after the company topped analysts’ earnings expectations. Facebook missed expectations for revenue and monthly active users.

United Parcel Service also saw its shares increase 2% premarket after the shipping firm posted strong beats on profit and revenue across all business segments.

General Electric rose 1.4% in premarket trading after the company issued an upward revision to its full-year earnings forecast while reporting higher than expected third-quarter profit.

Of the 119 companies in the S&P 500 that have reported earnings, 83% beat expectations, according to Refinitiv. S&P 500 companies are expected to grow profit by about 35% in the third quarter.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 4580.75 will reaffirm the uptrend. A trade through 4260.00 will change the main trend to down.

A change is trend today is nearly impossible unless there is a crash, but due to the prolonged move up in terms of price and time, the index begins today’s session inside the window of time for a potentially bearish closing price reversal top.

Based on the 4317.25 to 4580.75 minor range, the nearest support is its 50% level at 4449.00. This level will move up as the index moves higher.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index into the close on Tuesday is likely to be determined by trader reaction to 4558.00.

Bullish Scenario

A sustained move over 4558.00 will indicate the presence of buyers. Taking out the intraday high at 4580.75 will indicate the buying is getting stronger. There is no resistance.

Bearish Scenario

A sustained move under 4558.00 will signal the presence of sellers. Taking out the intraday low at 4561.50 will indicate the selling pressure is getting stronger.

A move through yesterday’s low at 4522.50 will make 4580.75 a new minor top. If this move is able to create enough downside momentum then look for a near-term move to 4449.00.

Closing Price Reversal Top

A close under 4558.00 will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.