E-mini S&P 500 Index (ES) Futures Technical Analysis – Strong Upside Momentum Continues

December E-mini S&P 500 Index futures are trading higher on Monday and in a position to post another record high after President Joe Biden picked Jerome Powell to continue to lead the Federal Reserve over Fed Governor Lael Brainard.

Bank stocks and Treasury yields moved higher after the White House announced the Fed decision. Shares of JPMorgan and Morgan Stanley rose about 2% in early trading.

At 14:50 GMT, December E-mini S&P 500 Index futures are trading 4728.00, up 33.50 or +0.71%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Taking out 4723.50 reaffirmed the uptrend. A move through 4625.25 will change the main trend to down.

The minor trend is also up. A trade through 4668.00 will change the minor trend to down. This will also shift momentum to the downside.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to 4694.50.

Bullish Scenario

A sustained move over 4694.50 will indicate the presence of buyers. Taking out the intraday high at 4731.75 will indicate the buying is getting stronger. There is no resistance at this time.

Bearish Scenario

A sustained move under 4694.50 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the minor bottom at 4668.00.

Taking out 4668.00 will shift momentum to the downside and if the selling volume is stronger enough, we could see a test of the main bottom at 4625.25.

Side Notes

A close under 4694.50 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.