E-mini S&P 500 Index (ES) Futures Technical Analysis – Struggling With 50% Level at 3387.25

December E-mini S&P 500 Index futures are trading higher on Thursday shortly after the cash market opening as investors bet on more fiscal stimulus after data showed a recovery in the labor market was slowing.

The number of Americans filing for jobless benefits fell to 837,000 in the week ended September 26, but claims could rise again over the next few weeks as businesses cut more jobs to ride out the recession.

At 15:20 GMT, December E-mini S&P 500 Index futures are trading 3367.00, up 15.00 or +0.45%.

Six of the 11 major S&P sectors were trading higher after the Trump administration proposed a new stimulus bill to House Democrats worth more than $1.5 trillion, which includes a $20 billion extension in aid for the battered airline industry.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum is trending higher. A trade through 3419.50 will change the main trend to up. A move through 3198.00 will change the main trend to down.

The minor trend is up. This is driving the momentum higher. A trade through 3291.25 will change the minor trend to down. This will also shift momentum to the downside.

The minor support levels are 3308.75 and 3293.00.

The major support zone is 3246.25 to 3168.50.

The short-term range is 3576.25 to 3198.00. Its retracement zone at 3387.25 to 3431.75 is potential resistance. The main top at 3419.50 falls inside this zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the 50% level at 3387.25.

Bullish Scenario

A sustained move over 3387.25 will indicate the presence of buyers. This could trigger an acceleration into 3419.50, followed closely by the Fibonacci level at 3431.75.

Bearish Scenario

A sustained move under 3387.25 will signal the presence of sellers. If this is able to generate enough downside pressure then look for a pullback into 3308.75 then 3293.00 over the near-term.