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E-mini S&P 500 Index (ES) Futures Technical Analysis – Straddling Retracement Zone at 3387.00 to 3431.75

By:
James Hyerczyk
Published: Oct 27, 2020, 14:11 UTC

The direction of the December E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the intermediate 50% level at 3387.00.

E-mini S&P 500 Index

In this article:

December E-mini S&P 500 Index futures are trading flat shortly after the cash market opening after showing little move during the overnight session. Traders are showing little reaction to a deluge of corporate earnings, while bracing for potential volatility ahead of Election Day.

The benchmark index hit a three week low on Monday as a record number of new coronavirus infections in the United States and some European countries and a lack of agreement in Washington over the next fiscal stimulus raised worries about the economic recovery.

At 13:44 GMT, December E-mini S&P 500 Index futures are trading 3392.00, down 1.50 or -0.04%.

In other news, drugmaker Eli Lilly and Co fell 4% after it reported a fall in quarterly profit. Industrial companies 3M Co and Caterpillar Inc were flat to slightly lower after results.

Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 3541.00 will signal a resumption of the uptrend. The main trend will change to down on a move through 3198.00.

The minor trend is down. This is controlling the momentum. A trade through 3462.50 will change the minor trend to up. This will shift momentum back to the upside.

The intermediate range is 3576.25 to 3198.00. The index is currently straddling its retracement zone at 3387.00 to 3431.75. This zone is controlling the near-term direction of the index.

The short-term range is 3198.00 to 3541.00. Its retracement zone at 3369.50 to 3329.00 is support. This zone stopped the selling at 3356.00 on Monday.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the intermediate 50% level at 3387.00.

Bullish Scenario

A sustained move over 3387.00 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the intermediate Fibonacci level at 3431.75. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 3387.00 will signal the presence of sellers. This could trigger a break into the minor 50% level at 3369.50, followed closely by yesterday’s low at 3356.00 and the minor Fibonacci level at 3329.00. This is a potential trigger point for an acceleration to the downside.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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