E-mini S&P 500 Index (ES) Futures Technical Analysis – Trading on Weakside of 3571.75, 3587.25 Pivots

December E-mini S&P 500 Index futures are trading lower shortly after the mid-session on Thursday after an earlier report showed initial jobless claims unexpectedly rose for the previous week, adding to fears that soaring COVID-19 cases will stifle growth in the world’s largest economy.

At 17:43 GMT, December E-mini S&P 500 Index futures are trading 3559.75, down 5.25 or -0.15%.

Initial claims for state unemployment benefits totaled a seasonally adjusted 742,000 for the week-ended November 14, compared with 711,000 in the prior week, the Labor Department said. Economists polled by Reuters had forecast 707,000 applications in the latest week.

In other news, L Brands surged 17.3% premarket after posting better-than-expected quarterly results, helped by record sales growth at Bath & Body Works and higher demand for Victoria’s Secret lingerie.

Nvidia Corp slipped 1% after company executives said data center chip sales would fall slightly in the fourth quarter.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, upside momentum is starting to slow. A trade through 3668.00 will signal a resumption of the uptrend. A move through 3225.00 will change the main trend to down.

The minor trend is also up, but a new minor top has formed at 3637.00. A trade through 3513.00 will change the minor trend to down. A move through 3506.50 will reaffirm the downtrend.

Short-Term Outlook

The direction of the December E-mini S&P 500 Index over the short-term will be determined by trader reaction to a pair of 50% levels at 3571.75 and 3587.25.

Bearish Scenario

A sustained move under 3571.75 will indicate the presence of sellers. This could trigger a break into 3513.00 to 3506.50. If the latter fails then look for a possible acceleration to the downside with 3446.50 the next likely downside target.

Bullish Scenario

A sustained move over 3587.25 will signal the presence of buyers. This could lead to a retest of the minor top at 3637.00, followed by the main top at 3668.00.