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E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 2508.75, Weakens Under 2412.75

By:
James Hyerczyk
Updated: Dec 31, 2018, 18:38 UTC

The early price action indicates that the cluster of numbers at 2508.75, 2503.75 and 2498.50 is controlling the direction of the market today.

S&P 500

March E-mini S&P 500 Index futures are trading higher on Monday, but volume is extremely light ahead of Tuesday’s New Year’s Day holiday. The market is trading inside Friday’s range which suggests investor indecision and impending volatility. Fundamentally, the market is being supported by optimism over a US-China trade agreement.

At 1837 GMT, March E-mini S&P 500 Index futures are trading 2506.00, up 20.00 or +0.79%.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on December 26. A move through 2523.00 will indicate the buying is getting stronger.

A trade through 2316.75 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 2690.50 to 2316.75. Its retracement zone at 2503.75 to 2547.75 is acting like resistance. Since the main trend is down, sellers came in on a test of this zone to stop the rally at 2523.00.

The short-term range is 2316.75 to 2523.00. If there is a short-term retracement then look for a pullback into its retracement zone at 2419.75 to 2395.50.

Daily Technical Forecast

The early price action indicates that the cluster of numbers at 2508.75, 2503.75 and 2498.50 is controlling the direction of the market today.

Bullish Scenario

Look for an upside bias to develop on a sustained move over the uptrending Gann angle at 2508.75. If this creates enough upside momentum then look for a move into Friday’s high at 2523.00. This is followed by the Fibonacci level at 2547.75.

Bearish Scenario

Look for a downside bias to develop on a sustained move under the downtrending Gann angle at 2498.50. The daily chart is wide open under this angle so if the selling pressure increases, we could see an acceleration to the downside with the target a support cluster at 2419.75 to 2412.75.

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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