E-mini S&P 500 Index (ES) Futures Technical Analysis – Upside Target 3387.25, Downside Target 3308.75

December E-mini S&P 500 Index futures opened slightly lower after giving back earlier gains as some of the major players moved to the sidelines ahead of the first presidential debate, while awaiting a reading on consumer confidence.

President Donald Trump and Democratic challenger Joe Biden will square off later in the evening at 01:00 GMT in their first 90-minute televised debate in Cleveland, Ohio, five weeks before the election. Polls show Biden leading Trump nationally and in a number of key battleground states.

At 13:30 GMT, December E-mini S&P 500 Index futures are trading 3340.50, down 5.50 or -0.16%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Momentum is trending higher, however, after the confirmation of last Thursday’s closing price reversal bottom.

The main trend will change to up on a move through 3419.50. A move through 3198.00 will signal a resumption of the downtrend.

Taking out the intraday high at .3363.00 will indicate that today’s earlier buyers have returned.

The current three day rally started after a closing price reversal bottom formed inside the main retracement zone at 3246.25 to 3168.50.

On the downside are a pair of 50% levels at 3308.75 and 3280.50. Both are considered potential support. Holding above these levels is helping to generate the upside momentum.

The short-term range is 3576.25 to 3198.00. Its retracement zone at 3387.25 to 3431.75 is the primary upside target.

Short-Term Outlook

The early price action suggests the buying could be weak today. If that’s the case then look for a pullback into the first pivot at 3308.75. If this fails then look for the selling to possibly extend into the next pivot at 3280.50.

If the upside momentum resumes and buyers are able to take care of 3363.00 then look for a drive into 3387.25, followed by 3419.50.

A closing price reversal bottom typically fuels a 2 to 3 day counter-trend rally so a short-term pullback would not be a major surprise.