E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3587.25, Weakens Under 3571.75

December E-mini S&P 500 Index futures are inching higher late in the session on Wednesday on hopes for a faster economic recovery following fresh vaccine updates.

In vaccine related news, Pfizer said it would apply for emergency U.S. authorization of its COVID-19 vaccine within days and disclosed final results from a late-stage trial that showed it was 95% effective. The drugmaker’s shares rose 2.99%.

The announcement comes after Moderna Inc on Monday released preliminary data for its COVID-19 vaccine, showing similar effectiveness.

At 18:23 GMT, December E-mini S&P 500 Index futures are trading 3611.25, up 4.50 or +0.12%.

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 nearest main bottom at 3225.00.

The minor trend is also up. A trade through 3513.00 will change the minor trend to down. This will shift momentum to the downside. A move through the next minor bottom at 3506.50 will confirm the changes.

The first minor range is 3668.00 to 3506.50. Its 50% level at 3587.25 is support. This level has been tested three times this week.

The second minor range is 3506.50 to 3637.00. Its 50% level at 3571.75 is additional support.

The short-term range is 3225.00 to 3668.00. If the minor trend changes to down then look for a break into its retracement zone at 3446.50 to 3394.25.

Short-Term Outlook

The direction of the December E-mini S&P 500 Index the rest of the week is likely to be determined by trader reaction to the minor 50% levels at 3587.25 and 3571.75.

Bullish Scenario

A sustained move over 3587.25 will indicate the presence of buyers. If this move can create enough upside momentum to overcome the minor top at 3637.00 then look for a surge into the all-time high at 3668.00.

Bearish Scenario

A sustained move under 3571.75 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to possibly extend into the pair of minor bottoms at 3513.00 and 3506.50. The latter is a potential trigger point for an acceleration to the downside with 3446.50 the next likely downside target.

For a look at all of today’s economic events, check out our economic calendar.