E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 2967.00, Weakens Under 2960.50

December E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. There was no follow-through to the upside following Friday’s strong surge as investors expressed caution over phase one of the trade deal between the United States and China, announced by President Trump. Furthermore, Bloomberg News is reporting that China wants to extend the trade talks before signing an agreement.

At 13:48 GMT, December E-mini S&P 500 Index futures are at 2966.25, down 4.50 or -0.14%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Friday when buyers took out the previous main top at 2959.50.

Trading back below 2959.50 will be a sign of weakness, but the main trend changes to down on a move through 2881.75.

The main range is 3025.75 to 2855.00. Its retracement zone at 2960.50 to 2940.25 is support. This zone is also controlling the near-term direction of the index.

The major support is the retracement zone at 2901.25 to 2872.00.

Daily Technical Forecast

Based on the early price action, the direction of the index the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 2967.00.

Bullish Scenario

A sustained move over 2967.00 will indicate the presence of buyers. This could lead to a retest of the downtrending Gann angle at 2983.75.

Overtaking 2983.75 could lead to a test of last week’s high at 2994.00. Taking out this level is likely to lead to a test of the downtrending Gann angle at 3004.75. This is the last potential resistance angle before the 3025.75 and 3032.25 main tops.

Bearish Scenario

A sustained move under 2967.00 will signal the presence of sellers. This could lead to a quick break into the Fibonacci level at 2960.50. This is a potential trigger point for an acceleration into the support cluster at 2941.75 to 2940.25.

The 50% level at 2940.25 is a potential trigger point for an acceleration into the next uptrending Gann angle at 2911.00.