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E-mini S&P 500 Index (ES) Futures Technical Analysis – Only Worry is Close Under 3211.75

By:
James Hyerczyk
Published: Dec 20, 2019, 14:49 UTC

Based on the early price action, the direction of the March E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to yesterday’s close at 3211.75.

E-mini S&P 500 Index Up

March E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Friday.  The move puts the index on track for its fourth straight weekly gain. The index hit an all-time high earlier in the session as investors continued to shrug off President Trump’s impeachment by the House, while maintaining their focus on the trade deal between the United States and China.

At 14:34 GMT, March E-mini S&P 500 Index futures are trading 3223.50, up 11.75 or +0.35%.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high. A trade through 3071.00 will change the main trend to down. This is highly unlikely, however, the prolonged move up in price and time has put the index in a position to post a potentially bearish closing price reversal top.

This chart pattern won’t change the trend to down, but it will indicate the selling is greater than the buying at current price levels. It could also trigger the start of a 2 to 3 day correction.

The minor trend is also up. The minor trend will change to down on a move through 3192.00. This will also shift momentum to the downside.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to yesterday’s close at 3211.75.

Bullish Scenario

A sustained move over 3211.75 will indicate the presence of buyers. There is no resistance.

Bearish Scenario

A sustained move under 3211.75 will signal the presence of sellers. This will also put the index in a position to post a potentially bearish closing price reversal top.

The first downside target is the minor bottom at 3192.00. Taking out this level will change the minor trend to down. This could lead to a test of a pair of uptrending Gann angles at 3182.25 and 3175.00.

About the Author

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.

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