E-mini S&P 500 Index (ES) Futures Technical Analysis – Reaction to 4549.25 Pivot Sets Early Tone

December E-mini S&P 500 Index futures took a dive on Friday, primarily led by weakness in the technology sector. The catalyst behind the selling pressure were mixed jobs data, uncertainty around the Omicron coronavirus variant and the path of the Federal Reserve’s policy tightening.

On Friday, December E-mini S&P 500 Index futures settled at 4537.50, down 38.25 or -0.84%. The S&P 500 ETF Trust (SPY) finished at 453.43, down 3.97 or -0.87%.

The S&P 500 technology index slid 1.9%, leading losses among the 11 major sectors. Shares of Apple Inc, Meta Platforms, Google-owner Alphabet Inc, Amazon.com Inc, Microsoft Corp, Nvidia Corp and Tesla Inc fell between 1.4% and 6.1% to weigh the most on the S&P 500.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4492.00 will signal a resumption of the downtrend. A move through 4717.00 will change the main trend to up.

The minor trend is also down. A trade through 4606.50 will change the minor trend to up. This will shift momentum to the upside.

The short-term range is 4260.00 to 4740.50. Its retracement zone at 4500.25 to 4443.50 is potential support. This zone stopped the selling at 4492.00 on Friday.

The long-term support zone is 4428.75 to 4355.25.

The combination of these two zones creates a support cluster at 4443.50 to 4428.75.

The new minor range is 4606.50 to 4492.00. The index closed on the weak side of its pivot at 4549.25.

The second minor range is 4740.50 to 4492.00. Its 50% level at 4616.25 is another potential upside target.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index early Monday is likely to be determined by trader reaction to 4549.25.

Bearish Scenario

A sustained move under 4549.25 will indicate the presence of sellers. If this creates enough downside momentum then look for a break into 4500.25, followed by 4492.00.

Taking out 4492.00 will indicate the selling pressure is getting stronger. This could trigger a further break into 4443.50 – 4428.75. The latter is a potential trigger point for an acceleration into 4355.25.

Bullish Scenario

A sustained move over 4549.25 will signal the presence of buyers. This could trigger an acceleration to the upside with 4606.50 the next target. Taking out this level will shift momentum to the upside.

The pivot at 4616.25 is a potential trigger point for an acceleration to the upside with the next major targets a pair of main tops at 4717.00 and 4740.50.