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James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are called steady shortly before the cash market opening. There was a slight follow-through to the upside earlier in the session, confirming the uptrend, but the market turned lower once the buying dried up. Due to the prolonged move up in terms of price and time and the early price action, traders have to be aware of the possibility of a closing price reversal top.

Daily December 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 in the session when buyers took out yesterday’s high. There is no upside target at this time. The market is being driven by momentum and will continue to move higher as long as the momentum is trending higher.

A closing price reversal top and subsequent confirmation will shift momentum to the downside. Based on the early price action, since we’ve already had the higher-high, all we need is a lower close to form the potentially bearish chart pattern. Therefore, keep an eye on trader reaction to yesterday’s close at 2939.50 the rest of the session.


Daily Technical Forecast

Based on the early trade, 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 2939.50.

A sustained move over 2939.50 will indicate the presence of buyers. A move through the intraday high at 2945.50 will indicate the buying is getting stronger.

A sustained move under 2939.50 will signal the presence of sellers. If this generates enough downside momentum then look for a test of the steep uptrending Gann angle at 2931.50. Look for a technical bounce on the first test of this angle.

We could see a steep break if 2931.50 fails as support. The daily chart indicates there is plenty of room to the downside with the next target a support cluster at 2911.25, 2909.50 and 2907.50.

Basically, the index needs to close higher or a closing price reversal top will form. Additionally, the angle at 2931.50 is the trigger point for a potential acceleration to the downside.

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