E-mini S&P 500 Index (ES) Futures Technical Analysis – Straddling Pivots at 2992.25 to 3003.25 into Close

After treading water most of the session on Friday, December E-mini S&P 500 Index futures are under pressure during the last hour of cash market trading on news that Chinese trade officials are cutting short their visit to the United States.

The index was briefly lifted early in the session as optimistic investors hoped the start of face-to-face talks for the first time in two months would lay the groundwork for high-level negotiations early next month. However, this wasn’t the case on Friday after Chinese officials ended the meeting and headed back to China earlier than planned.

At 19:15 GMT, December E-mini S&P 500 Index futures are trading 3002.50, down 5.50 or -0.19%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 3025.75 will signal a resumption of the uptrend. A move through 2958.75 will change the main trend to down.

The minor trend is also up, but a move through 2980.75 will change the minor trend to down. This will reaffirm the change in momentum to down.

The market is also straddling a pair of minor 50% levels at 2992.25 and 3003.25, which seem to be controlling the price action on Friday.

The major support zone is 2918.25 to 2894.00.

Daily Technical Forecast

Based on the early price action and the current price at 3002.50, the direction of the December E-mini S&P 500 Index into the close on Friday is likely to be determined by trader reaction to the 50% level at 3003.25 and the 50% level at 2992.25.

Bearish Scenario

A sustained move under 2992.25 will indicate the presence of sellers. Taking out the uptrending Gann angle at 2990.75 will indicate the selling is getting stronger. This could trigger a break into the minor bottom at 2980.75, followed by another uptrending Gann angle at 2974.75. This is the last potential support angle before the 2958.75 main bottom.

Bullish Scenario

A sustained move over 3003.25 will signal the presence of buyers. This could trigger an acceleration to the upside with the next targets lined up at 3022.75, 3024.50 and 3025.75.