December E-mini S&P 500 Index futures are called lower shortly ahead of the cash market opening. The market is being pressured by general nervousness ahead of the announcement of the new Fed chair, the release of a slew of earnings reports and U.S. economic data. Republicans are also expected to release their revised tax reform plan.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 2585.50 will signal a resumption of the uptrend.
The earlier price action took out the previous day’s low, making 2585.50 a new minor top.
The main range is 2541.50 to 2585.50. Its retracement zone at 2562.75 to 2557.75 is the primary downside target.
The short-term range is 2585.50 to 2563.50. Its retracement zone at 2574.50 to 2577.25 is the next upside target.
Daily Forecast
Based on the earlier price action, the direction of the index today is likely to be determined by trader reaction to the short-term 50% level at 2574.50.
A sustained move under 2574.50 will signal the presence of sellers. If this generates enough downside momentum, we could see a pullback into the 50% level at 2562.75. If this price level fails then look for the selling to extend into the Fibonacci level at 2557.75.
The Fib level is also the trigger point for an acceleration to the downside with the next target the minor bottom at 2541.50.
Overtaking the short-term 50% level at 2574.50 will indicate the presence of buyers. This could lead to a fast test of the short-term Fib at 2577.25.
The Fib at 2577.25 is the trigger point for an acceleration to the upside with the next target the minor top at 2585.50.