E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3420.25, Weakens Under 3383.00Holding above 3420.25 should keep the rally afloat. A trade below 3383.00 will indicate the selling pressure is getting stronger.
December E-mini S&P 500 Index futures are trading nearly flat as we approach the last hour of trading on Friday. The market is currently sitting inside yesterday’s range which suggests trader indecision and impending volatility as investors awaited the results of the presidential election, while digesting the latest monthly jobs report for clues on the strength of the economy.
At 19:29 GMT, December E-mini S&P 500 Index futures are trading 3506.00, up 1.25 or +0.04%.
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Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 3541.00 will signal a resumption of the uptrend, followed by the September 3 main top at 3576.25. The main trend changes to down on a move through 3225.00.
The main range is 2916.50 to 3576.25. Its retracement zone at 3246.25 to 3168.50 is major support. This zone stopped the selling at 3225.00 on October 30.
The minor range is 3541.00 to 3225.00. The index is currently trading on the strong side of its retracement zone at 3420.25 to 3383.00, putting it in a bullish position.
Traders seem to be comfortable with the idea of a Joe Biden presidency, and the prospect of a policy gridlock in Washington, which could ease worries about tighter regulations on U.S. companies.
Holding above the minor Fibonacci level at 3420.25 should keep the rally afloat. If it fails then look for the selling to possibly extend into the minor 50% level at 3383.00.
A trade below 3383.00 will indicate the selling pressure is getting stronger, but it won’t signal a change in trend.
We could see some selling on profit-taking on the first test of 3541.00 to 3576.25. This is a typical reaction this close to an all-time high. If we remain in a momentum driven market then look for any positive headline to drive the index through 3576.25, possibly trigger an acceleration to the upside.