E-mini S&P 500 Index (ES) Futures Technical Analysis – Reaction to Pivot at 2998.50 Will Set the Tone

December E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. The index was boosted by better-than-expected earnings from tech giant Microsoft. The early move was also supported by a rise in shares of NBCUniversal-parent Comcast, Dow Inc. and PayPal. Those companies also beat analyst expectations.

At 13:44 GMT, December E-mini S&P 500 Index futures are at 3010.25, up 4.50 or +0.15%.

According to FactSet, more than 31% of S&P 500 companies have reported quarterly earnings thus far, with nearly 80% of them posting results that beat analyst estimates.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out the previous high at 3014.25. However, the lack of follow-through to the upside suggests the buying is tentative ahead of the release of another round of earnings reports after the close.

The market is in no position to change the trend to down. However, it is still in a position to form a closing price reversal top.

The minor trend is also up. A trade through 2982.00 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 2982.00 to 3015.25. Its 50% level or pivot at 2998.50 is potential support.

The nearest major support is the Fibonacci level at 2960.25.

Daily Technical Forecast

Based on the early price action and the current price at 2010.25, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the pivot at 2998.50.

Bullish Scenario

A sustained move over 2998.50 will indicate the presence of buyers. If this move can bring in the buyers then we could see a retest of the intraday high at 3015.25. Taking out this level with conviction could trigger a surge into the next major top at 3025.75, followed by the contract high at 3032.25.

Bearish Scenario

A sustained move under 2998.50 will signal the presence of sellers. This could trigger an acceleration to the downside with the first target the minor bottom at 2982.00, followed by a support cluster at 2975.00.