E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3148.00, Weakens Under 3133.50

December E-mini S&P 500 Index futures are trading flat shortly after the cash market opening. The benchmark index rose to near-record highs on Friday, boosted by a U.S. jobs report that easily topped analyst expectations, however, there has been no follow-through to the upside so far on Monday.

Bad export data for November out of China could be helping to cap today’s gains as well as position-squaring ahead of Wednesday’s U.S. Federal Reserve monetary policy decision.

At 14:51 GMT, December E-mini S&P 500 Index futures are at 3148.00, up 2.00 or +0.06%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. 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 potential support.

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

Daily Technical Forecast

Based on the early price action and the current price at 3148.00, 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 downtrending Gann angle at 3148.00.

Bullish Scenario

A sustained move over 3148.00 will indicate the presence of buyers. This could trigger a rally into the next downtrending Gann angle at 3153.00. This is the last potential resistance angle before the 3158.00 main top.

Bearish Scenario

A sustained move under 3148.00 will signal the presence of sellers. The first downside target is a support cluster at 3138.00 to 3133.50.

A failure to hold 3133.50 will indicate the selling pressure is getting stronger. This could trigger an acceleration to the downside with the next targets a downtrending Gann angle at 3118.00, followed closely by a 50% level at 3113.75.

Side Notes

It looks like we’re in for a low-volume session so be careful buying strength and selling weakness.