E-mini S&P 500 Index (ES) Futures Technical Analysis – Trading on Bullish Side of Retracement Zone

December E-mini S&P 500 Index futures are trading sharply higher at the midsession, driven by a strong rally in the technology sector. The catalyst behind the rally is optimism about a deal in Washington over more fiscal stimulus. Traders are also anticipating the start of quarterly corporate earnings season.

At 15:49 GMT, December E-mini S&P 500 Index futures are trading 3510.75, up 37.50 or +1.08%.

Apple Inc gained 3.3% in premarket trading ahead of a special event on Tuesday, which most analysts believe will be used to unveil the new iPhone with 5G capabilities.

Results from big U.S. banks will be in focus this week, with JPMorgan & Co and Citigroup set to post results on Tuesday. Bank shares were flat to slightly higher in premarket trading.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend resumed earlier today when buyers took out the previous day’s high. A trade through 3198.00 will change the main trend to down. This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is vulnerable to a closing price reversal top.

The minor trend is also up. A trade through 3330.50 will change the minor trend to down. This will shift momentum to the downside.

The short-term range is 3576.25 to 3198.00. Its retracement zone at 3431.75 to 3387.00 is support. Trading on the strong side of this zone is helping to generate the current upside momentum.

Daily Swing Chart Technical Forecast

The current breakout is not unexpected. The daily chart indicates there is no resistance to stop the rally until 3576.25. Furthermore, look for the strong upside bias to continue as long as the index remains over 3431.75 to 3387.00.