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E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3664.00, Weakens Under 3645.25

By:
James Hyerczyk
Published: Dec 15, 2020, 16:17 UTC

The early price action suggests the March E-mini S&P 500 Index is being controlled by a pair of 50% levels at 3664.00 and 3645.25.

E-mini S&P 500 Index

In this article:

March E-mini S&P 500 Index futures are trading higher shortly after the opening as progress toward a massive government spending bill and COVID-19 relief measures kept spirits high, while investors awaited new economic cues from the Federal Reserve’s final meeting of the year.

At 15:55 GMT, March E-mini S&P 500 Index futures are at 3656.75, up 16.75 or +0.46%.

Technology stocks were the best performing S&P 500 sector in early trading. Increased liquidity and ultra-low lending rates have seen investors flocking to stocks for returns through the COVID-19 pandemic, with the technology sector benefiting the most.

In stock related news, Eli Lilly and Co rose 2.1% after the company said it would buy Prevail Therapeutics Inc in a deal potentially valued at $1.04 billion, to expand its presence in the lucrative field of gene therapy. Prevail’s shares surged about 83.0%.

Moderna Inc’s shares fell 3.2%, even as U.S. Food and Drug Administration staff members did not raise any new concerns over data on the drugmaker’s COVID-19 vaccine. A report said the vaccine will gain emergency use approval on Friday.

Daily March E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on December 9.

A trade through 3707.00 will negate the closing price reversal top and signal a resumption of the uptrend. A trade through 3216.25 will change the main trend to down.

The minor trend is down. This confirms the shift in momentum. A trade through 3691.50 will change the minor trend to up. A move through the minor bottom at 3620.75 will indicate the selling pressure is getting stronger.

The market is currently trapped inside a number of 50% levels. This is causing the choppy, two-sided trade.

On the upside, the 50% resistance is 3664.00.

On the downside, potential support is a series of 50% levels at 3645.25, 3620.50 and 3602.00. The latter is a potential trigger point for an acceleration to the downside.

Daily Swing Chart Technical Forecast

The early price action suggests the March E-mini S&P 500 Index is being controlled by a pair of 50% levels at 3664.00 and 3645.25.

Bullish Scenario

A sustained move over 3664.00 will indicate the presence of buyers. This could trigger a surge into 3691.50. Taking out this price could fuel a rally into 3707.00.

Bearish Scenario

A sustained move under 3645.25 will signal the presence of sellers. This could trigger a break into a support cluster at 3620.75 to 3620.50. If this area fails then look for the selling to extend into 3602.00.

Taking out 3602.00 could trigger the start of an acceleration to the downside.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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