E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 2905.75, Weakens Under 2901.25

December E-mini S&P 500 Index futures are edging higher shortly after the release of a solid U.S. Non-Farm Payrolls report.  The news reduced some fears of recession that had reemerged earlier this week on concerns over weaker-than-expected manufacturing and services reports. Stocks rose on the news, and traders sold Treasury bonds, gold and the Japanese Yen, reducing their exposure to safe-haven assets.

At 13:03 GMT, December E-mini S&P 500 Index futures are trading 2918.50, up 6.50 or +0.22%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher after yesterday’s closing price reversal bottom and today’s confirmation of the chart pattern.

The main trend will change to up on a trade through 3025.75. This is highly unlikely today, but there is room for a normal 50% to 61.8% retracement of the last break.

A trade through 2855.00 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 2777.00 to 3025.75. Its retracement zone at 2901.25 to 2872.00 is potential support.

The short-term range is 3025.75 to 2855.00. Its retracement zone at 2940.50 to 2960.50 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this area.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index the rest of the session on Friday is likely to be determined by trader reaction to the downtrending Gann angle at 2905.75 and the main 50% level at 2901.25.

Bullish Scenario

A sustained move over 2905.75 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential surge into the short-term 50% level at 2940.50, followed by an uptrending Gann angle at 2945.00 and the short-term Fibonacci level at 2960.50.

Bearish Scenario

A sustained move under 2901.25 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next targets the main Fibonacci level at 2872.00 and the uptrending Gann angle at 2861.00.

Taking out 2855.00 will signal a resumption of the downtrend.