E-mini S&P 500 Index (ES) Futures Technical Analysis – Weakens Under 2961.75, Strengthens Over 2979.00

December E-mini S&P 500 Index futures are trading nearly flat shortly before the cash market opening as investors continue to digest the news that the U.S. House of Representatives will launch a formal impeachment inquiry on President Trump. Yesterday’s steep sell-off is likely an indication that investors have already taken protection against the move. We’re now expecting to see a news driven two-sided trade at the start of the process.

At 13:20 GMT, December E-mini S&P 500 Index futures are trading 2969.00, down 1.25 or -0.03%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Tuesday when sellers took out the previous main bottom at 2958.75. Trade through 3025.75 will change the main trend to up.

The main range is 2811.00 to 3025.75. If the selling pressure continues then its retracement zone at 2918.25 to 2893.00 will become the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at 2969.00, the direction of the December E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 2979.00 and the downtrending Gann angle at 2961.75.

Trading between 2961.75 and 2979.00 is likely to produce a choppy, two-sided trade.

Bearish Scenario

A sustained move under 2961.75 will indicate the presence of sellers. This could trigger an acceleration to the downside with the first target a 50% level at 2918.25.

Bullish Scenario

A sustained move over 2979.00 will signal the presence of buyers. This could trigger a labored rally with the first target angle dropping in at 2993.75, followed by another downtrending Gann angle at 3009.75.