E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3087.00, Weakens Under 3073.75

December E-mini S&P 500 Index futures are trading higher at the mid-session, bouncing back from earlier weakness. The gains were helped by a surge in Disney shares, which rose nearly 3.0% after the media giant said its Disney+ streaming service had more than 10 million sign-ups. However, shares of Facebook, Amazon, and Netflix all fell at least 0.6% to slightly offset Disney gains.

At 18:28 GMT, December E-mini S&P 500 Index futures are at 3093.75, up 1.75 or +0.06%.

Shortly before the cash market opening, the Labor Department reported the U.S. consumer price index rose more than expected in October. Fed Chairman Jerome Powell addressed the Congressional Joint Economic Committee later in the day. In prepared remarks, he said the path of Fed interest rates is unlikely to change as long as the economy keeps growing.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3102.00 will reaffirm the uptrend. The main trend will change to down on a move through the 3020.25 main bottom.

The minor trend is also up. The minor trend will change to down on a trade through 3063.00. This will also shift momentum to the downside.

The minor range is 3063.00 to 3102.00. The market is currently trading on the strong side of its pivot at 3082.50, giving it an upside bias.

The second minor range is 3020.25 to 3102.00. Its 50% level or pivot at 3061.00 is the next potential support level.

Daily Technical Forecast

Based on the early price action and the current price at 3093.75, the direction of the December E-mini S&P 500 Index into the close on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 3092.25.

Bullish Scenario

A sustained move over 3092.25 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to attempt a breakout over the minor top at 3102.00.

Bearish Scenario

A sustained move under 3092.25 will signal the presence of sellers. This could lead to a quick test of an uptrending Gann angle at 3087.00, followed closely by a pivot at 3082.50.

If support fails at 3082.50 then look for a break into the uptrending Gann angle at 3073.75. A failure at this price could trigger a further decline into the minor bottom at 3063.00 and another pivot at 3061.00.

The 50% level at 3061.00 is a potential trigger point for an acceleration to the downside.