E-mini S&P 500 Index (ES) Futures Technical Analysis – Trading on Weak Side of Resistance Area
December E-mini S&P 500 Index futures are edging lower in a volatile session on Friday as worries about rising coronavirus cases and a patchy economic recovery dampened risk appetite. The technology sector is weighing on the broader market, reversing earlier gains to extend their declines to a third day.
At 16:16 GMT, December E-mini S&P 500 Index futures are trading 3324.75, down 26.25 or -0.78%.
The index is also under pressure from investors rotating out of high-flying tech-related stocks and into industrial and transportation firms.
Out of the 11 major S&P 500 sectors, financials and industrials rose the most, while technology, real estate and utilities were the biggest decliners.
Volatility is likely to pick up as we near the close because of a quarterly expiration of U.S. stock options, stock index futures and index option contracts, known as “quadruple witching”.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 3286.00 will signal a resumption of the downtrend. A move through 3576.25 will change the main trend to up.
Taking out yesterday’s low at 3310.25 will make 3419.50 a new main top.
The short-term range is 3576.25 to 3286.00. Its retracement zone at 3431.25 to 3465.50 is the primary upside target.
The first minor range is 3286.00 to 3419.50. Its retracement zone at 3337.00 to 3352.75 is new resistance.
The second minor range is 3419.50 to 3310.25. Its 50% level at 3365.00 is resistance.
Look for a bearish tone into the close as long as the December E-mini S&P 500 Index remains under the Fibonacci level at 3337.00. Taking out 3310;.25 could create enough momentum needed to challenge the main bottom at 3286.00.
Traders really won’t get too excited about a rally unless 3365.00 is taken out with conviction.
For a look at all of today’s economic events, check out our economic calendar.