E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 2992.25, Weakens Under 2990.75

December E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. The early selling was fueled by a geopolitical event that drove crude oil prices sharply higher, while raising concerns about the strength of the global economy. A jump in the energy sector is helping to limit losses.

At 13:35 GMT, December E-mini S&P 500 Index futures are trading 3001.00, down 7.50 or -0.28%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of a closing price reversal top at 3025.75 on Friday and its subsequent confirmation earlier today.

A trade through 3025.75 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through 2958.75.

The short-term range is 2958.75 to 3025.75. Its 50% level or pivot is 2992.25.

The main range is 2811.00 to 3025.75. If the main trend changes to down then look for a break into its retracement zone at 2918.25 to 2893.00.

Daily Technical Forecast

Based on the early price action and the trade at 3001.00, the direction of the December E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to the pivot at 2992.25 and the uptrending Gann angle at 2990.75.

Bullish Scenario

A sustained move over 2992.25 will indicate the presence of buyers. If this generates enough upside momentum then look for buyers to try to fill the gap at 3002.50 to 3005.75.

This is followed by an uptrending Gann angle at 3022.75, a minor top at 3025.75, the all-time high at 3032.25 and another uptrending Gann angle at 3035.00. Crossing to the strong side of this angle will put the index in an extremely bullish position.

Bearish Scenario

A sustained move under 2992.25 will signal the presence of sellers. This could trigger a break into the uptrending Gann angle at 2974.75. This is the last potential support angle before the 2958.75 main bottom.

Taking out 2958.75 will change the main trend to down. This could trigger an acceleration to the downside with the next target angle coming in at 2923.00.