E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3144.00, Weakens Under 3130.00

December E-mini S&P 500 Index futures are little changed at the mid-session on Wednesday, shortly before the release of the Federal Reserve’s latest decision on monetary policy. The Fed is largely expected to keep rates unchanged. But Fed Chairman Jerome Powell is also expected to signal the central bank will take appropriate measures to keep liquidity high and overnight lending rates steady to end the year.

At 18:23 GMT, December E-mini S&P 500 Index futures are trading 3135.00, down 1.00 or -0.03%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 3158.00 will change the main trend to up. A move through 3069.50 will signal a resumption of the downtrend.

The short-term range is 3158.00 to 3069.50. Its 50% level or pivot at 3113.75 is support. It’s actually controlling the near-term direction of the index.

The main range is 3020.25 to 3158.00. Its retracement zone at 3089.00 to 3072.75 is support. This zone essentially stopped the selling last week at 3069.50.

Daily Technical Forecast

Based on the early price action and the current price at 3135.00, 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 a pair of downtrending Gann angles at 3144.00 and 3130.00.

Bullish Scenario

A sustained move over 3144.00 will indicate the buying is getting stronger. This could trigger a really into the next downtrending Gann angle at 3151.00. This is the last potential resistance angle before the 3158.00 main top.

Taking out 3158.00 will change the main trend to up. This could trigger a rally into a steep uptrending Gann angle at 3165.50. Crossing to the strong side of this angle will put the index in an extremely bullish position.

Bearish Scenario

A sustained move under 3130.00 will signal the presence of sellers. This could trigger a break into the uptrending Gann angle at 3117.50. Watch for a technical bounce on the first test of this angle.

If 3117.50 fails then look for a further break into the pivot at 3113.75. Buyers could come in on the first test of this level also. This is a potential trigger point for an acceleration into the next uptrending Gann angle at 3093.50.