E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 3350.00 Sets the Tone

December E-mini S&P 500 Index futures are edging higher shortly after the cash opening on Friday, however, the price action suggests a caution tone in the market. The rally is being driven by strong gains in the technology sector after a pullback in the previous session.

An earnings report showing Oracles’s solid quarter may have restored confidence that tech-related companies are emerging stronger from the coronavirus crisis.

At 13:30 GMT, December E-mini S&P 500 Index futures are trading 3346.00, up 16.00 or +0.46%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, the formation of a closing price reversal bottom on September 9 seems to have temporarily stopped the selling.

A trade through 3286.00 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through the last main top at 3576.25.

Trade through 3414.00 will confirm the closing price reversal bottom. This will shift momentum to the upside and could trigger the start of a 2 to 3 day rally.

The first minor range is 3576.25 to 3286.00. Its retracement zone at 3431.25 to 3465.25 is the primarily upside target.

The second minor range is 3286.00 to 3414.00. Its 50% level at 3350.00 is acting like a pivot.

The main range is 2916.50 to 3576.25. Its retracement zone at 3246.75 to 3168.75 is the major downside target.

Daily Swing Chart Technical Forecast

Base on the early price action, the direction of the December E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to the pivot at 3350.00.

Bullish Scenario

A sustained move over 3350.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible rally into 3414.00, followed by 3431.25 to 3465.50.

Bearish Scenario

A sustained move under 3350.00 will signal the presence of sellers. This could trigger a retest of 3286.00. Taking out this level could create the downside momentum needed to challenge the major retracement zone at 3246.75 to 3168.75.