E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3587.25, Weakens Under 3506.50

December E-mini S&P 500 Index futures are trading lower in the premarket session on Thursday as surging coronavirus infections raised doubts about a speedier economic recovery. After Monday’s surge to a new all-time high, investors seem to be re-assessing risks given the mass availability of a vaccine may take months, while a possible second or third wave in the United States is leading to rising hospitalizations and the re-imposition of restrictions.

At 09:28 GMT, December E-mini S&P 500 Index futures are at 3553.00, down 15.00 or -0.42%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3668.00 will signal a resumption of the uptrend. The main trend will change to down on a move through the last swing bottom at 3225.00.

The minor trend is also up. A trade through 3506.50 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 3668.00 to 3506.50. Its 50% level or pivot at 3587.25 is potential resistance.

The short-term range is 3225.00 to 3668.00. If the minor trend changes to down then look for the selling to extend into its retracement zone at 3446.50 to 3394.25. Since the main trend is up, buyers are likely to come in on the first test of this area.

The main retracement zone support is 3292.25 to 3203.50. This area is controlling the longer-term direction of the market.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the minor pivot at 3587.25.

Bullish Scenario

A sustained move over 3587.25 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the all-time high at 3668.00.

Bearish Scenario

A sustained move under 3587.25 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to extend into the minor bottom at 3506.50. Taking out this level could trigger an acceleration into the short-term retracement zone at 3446.50 to 3394.25.

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