Advertisement
Advertisement

E-mini S&P 500 Index (ES) Futures Technical Analysis – Trading on Strong Side of Minor Pivot at 3587.25

By:
James Hyerczyk
Updated: Nov 16, 2020, 06:14 UTC

The direction of the December E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to the pivot at 3587.25.

E-mini S&P 500 Index Up

In this article:

December E-mini S&P 500 Index futures are trading higher early Monday as traders assessed a sharp market rotation that led to a mixed weekly performance last week. In the cash market last week, the benchmark S&P posted a record closing high while notching a one-week gain of 2.2%. The rally came about as investors piled into beaten-down value names at the expense of high-flying growth stocks amid positive vaccine news.

At 05:08 GMT, December E-mini S&P 500 Index futures are at 3609.50, up 27.50 or +0.77%.

Pfizer and BioNTech said last week that their coronavirus vaccine candidate was more than 90% effective preventing COVID-19 participants in a late-stage trial. The news sparked hope for an economic recovery, thus making value stocks such as United Airlines and Carnival Corp more attractive. United and Carnival rallied 12.4% and 15.9%, respectively, last week.

Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3668.00 will signal a resumption of the uptrend. The main trend will change to down on a move through the nearest main bottom at 3225.00.

The minor trend is also up. This is controlling the upside momentum. Taking out 3513.00 will change the minor trend to down, shifting momentum. A move through 3506.50 will reaffirm the change in trend.

The minor range is 3668.00 to 3506.50. Its 50% level at 3587.25 is controlling the direction of the index early Monday. Currently, it is providing support.

The short-term range is 3225.00 to 3668.00. If the minor trend changes to down then look for the selling to possibly extend into its retracement zone at 3446.50 to 3394.25.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the December E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to the pivot at 3587.25.

Bullish Scenario

A sustained move over 3587.25 will indicate the presence of buyers. If this creates enough upside momentum then look for the buying to possibly extend into 3668.00 over the near-term.

Bearish Scenario

A sustained move under 3587.25 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to possibly lead to a retest of 3513.00 to 3506.50. The latter is a potential trigger point for an acceleration into the short-term retracement zone at 3446.50 to 3394.25.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement