E-mini S&P 500 Index (ES) Futures Technical Analysis – Weakens Under 2872.00, Strengthens Over 2901.50

Based on the early price action and the current price at 2886.25, the direction of the December E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to 2893.00.
James Hyerczyk
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are inching higher shortly before the cash market opening on Thursday. The cash market indexes are expected to open lower since the futures markets went down after they closed on Wednesday. The major concern for investors is the condition of the U.S. economy after reports earlier in the week showed a drop in manufacturing activity and a slowdown in the labor market in September.

At 13:14 GMT, December E-mini S&P 500 Index futures are trading 2886.25, up 5.75 or +0.20%.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The market is not is a position to change the main trend to up, but it is in the window of time for a closing price reversal bottom. Taking out 2874.00 then closing higher for the session will form this chart pattern. If confirmed, it could lead to a 2 to 3 counter-trend rally.

The main range is 2777.00 to 3025.75. Its retracement zone at 2901.50 to 2872.00 is currently being tested.

The short-term range is 2811.00 to 3025.75. Its retracement zone is 2918.50 to 2893.00.

Combining the two zone creates a key area at 2901.50 to 2893.00. Trading on the weak side of this area will create a downside bias.

Daily Technical Forecast

Based on the early price action and the current price at 2886.25, the direction of the December E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to 2893.00.

Bearish Scenario

A sustained move under 2893.00 will indicate the presence of sellers. This could lead to a quick test of 2872.00, followed by an uptrending Gann angle at 2859.00.

The angle at 2859.00 is a potential trigger point for an acceleration to the downside with the next targets another uptrending Gann angle at 2818.00 and a main bottom at 2811.00. These are the last two potential support angles before the 2777.00 main bottom.

Bullish Scenario

A sustained move over 2893.00 will signal the return of buyers. This could create a labored rally with potential resistance levels at 2901.50, 2913.75 and 2918.50. The latter is a potential trigger point for an acceleration to the upside.

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