December E-mini S&P 500 Index futures are pointed lower shortly before the cash market opening as investors await the release of the Fed monetary
December E-mini S&P 500 Index futures are pointed lower shortly before the cash market opening as investors await the release of the Fed monetary policy meeting minutes at 1800 GMT.
The main trend is up according to the daily swing chart. A move through 2553.25 will signal a resumption of the uptrend. A trade through 2542.75 will turn 2553.25 into a minor top.
The short-term range is 2485.00 to 2553.25. If there is a steep break then its retracement zone at 2519.00 to 2511.00 will become the primary downside target.
This market is still being driven by strong upside momentum. If we take out 2553.25, the index is going to continue higher, or it’s going to form a closing price reversal top.
We could also see an inside move which is highly unlikely, or a new minor top could form.
If there is a break through 2542.75 then the first target is a long-term uptrending angle at 2539.25. We could see a technical bounce on the first test of this angle. If it fails then look for the selling to extend into the next uptrending angle at 2533.00.
If 2533.00 fails as support then look for an acceleration to the downside with the next major target coming in at 2519.00.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.