E-mini S&P 500 Index (ES) Futures Technical Analysis – Shift in Momentum Could Fuel 2 to 3 Day Correction

December E-mini S&P 500 Index futures are inching higher shortly after the cash market opening. Traders have clawed back the earlier loss fueled by worries over Brexit and bad earnings reports from Caterpillar and Boeing, but the buying has been enough to overcome the impact of yesterday’s dramatic closing price reversal top, which could be signaling the start of a near-term correction.

At 13:56 GMT, December E-mini S&P 500 Index futures are trading 2996.50, up 2.00 or +0.04%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, yesterday’s closing price reversal top at 3014.25 and today’s confirmation of the chart pattern, could be signaling the start of a 2 to 3 day counter-trend correction.

A trade through 3014.25 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is also up. A trade through 2975.00 will change the minor trend to down. This will confirm the shift in momentum to down.

The first retracement zone target comes in at 2960.25 to 2940.00.

Daily Technical Forecast

Taking out 3014.25 will indicate the return of buyers. If this creates enough upside momentum then look for the move to possibly extend into the main tops at 3025.75 and 3032.25.

On the downside, the first target is the minor bottom at 2975.00. This is followed closely by an uptrending Gann angle at 2967.00. Since the main trend is up, buyers could come in on a test of this angle.

If 2967.00 fails then look for the selling to possibly extend into the main Fibonacci level at 2960.25, followed by the next uptrending Gann angle at 2953.25.