E-mini S&P 500 Index (ES) Futures Technical Analysis – Testing Resistance Zone at 3387.25 – 3431.75

December E-mini S&P 500 Index futures are inching higher shortly before the cash market opening, but the buying is a little cautious as traders await signs from Washington on progress toward a new fiscal stimulus deal.

Some investors are also booking profits ahead of Wednesday’s release of the minutes from the last Federal Reserve meeting. Furthermore, the early price action suggests the euphoria from President Trump’s return to the White House after spending the weekend in the hospital due to coronavirus may be wearing off.

At 13:23 GMT, December E-mini S&P 500 Index futures are trading 3399.75, up 6.75 or +0.20%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3419.50 will change the main trend to up. A move through 3198.00 will signal a resumption of the downtrend.

The minor trend is also up. This is generating the upside momentum. Taking out the minor bottom at 3300.25 will change the minor trend to down.

The short-term range is 3576.25 to 3198.00. The index is currently testing its retracement zone at 3387.25 to 3431.75. Trader reaction to this zone should determine the near-term direction of the index.

The nearest support is a minor 50% level at 3308.75.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index the rest of the session on Tuesday 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 a rally into the main top at 3419.50, followed by the Fibonacci level at 3431.75. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 3387.25 will signal the presence of sellers. The daily chart suggests there is plenty of room to the downside with potential targets coming in at 3308.75, 3300.25 and 3291.25.

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