E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 3113.75 Sets the Tone Today

Based on the early price action and the current price at 3112.00, the direction of the December E-mini S&P 500 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 3113.75.
James Hyerczyk
E-mini S&P 500 Index

Worries over U.S.-China trade relations after President Trump threatened to raise tariffs on Chinese goods are helping to drive December E-mini S&P 500 Index futures lower shortly before the cash market opening.

His comment comes one day after a report said trade talks had hit an impasse due to problems with the rollback of tariffs. China thinks they had an agreement with the U.S. to rollback tariffs, but Trump said he has not agreed to the move.

At 14:13 GMT, December E-mini S&P 500 Index futures are trading 3112.00, down 7.00 or -0.22%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has shifted to the downside with the formation of a closing price reversal top on Tuesday and its subsequent confirmation earlier today. This chart pattern is potentially bearish and it could lead to a 2 to 3 day correction.

A trade through 3132.50 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is also up. A trade through 3075.75 will change the minor trend to down. This move will confirm the shift in momentum to down.

The first minor range is 3075.75 to 3132.50. Its 50% level at 3104.00 is the first downside target.

The second minor range is 3063.00 to 3132.50. Its 50% level at 3076.25 is the second downside target.

The main range is 3020.25 to 3132.50. Its retracement zone at 3076.25 to 3063.00 is the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at 3112.00, the direction of the December E-mini S&P 500 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 3113.75.

Bullish Scenario

A sustained move over 3113.75 will indicate the presence of buyers. This could trigger a rally into a pair of uptrending Gann angles at 3127.00 and 3132.25. Overcoming this angles will put the index in a position to breakout over 3132.50.

Bearish Scenario

A sustained move under 3113.75 will signal the presence of sellers. The nest target is a 50% level at 3097.75. This is a potential trigger point for an acceleration to the downside with the next target a support cluster at 3076.25. Buyers are likely to show up on a test of this price cluster.

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