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James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

E-Mini S&P 500 Index futures settled lower last week, while posting an inside move. The chart pattern suggests investor indecision and impending volatility. It’s too early to tell if investors are transitioning from bullish to bearish at this time.

After posting a new all-time high the previous week, buyers really never showed up last week with most likely taking a breather to assess the Fed’s interest rate and policy decisions. The index was essentially supported by a strong performance in the technology sector.

For the week, December E-Mini S&P 500 Index futures settled at 2919.00, down 14.75 or -0.50%.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 2947.00 will signal a resumption of the uptrend. The main trend changes to down on a trade through 2696.75.

The minor trend is also up. A move through 2869.50 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 2869.50 to 2947.00. Its 50% level or pivot at 2908.25 is support.

The next minor 50% levels come in at 2877.00 and 2871.25.

The main range is 2696.75 to 2947.00. Its retracement zone at 2821.75 to 2792.25 is the primary downside target.


Weekly Technical Forecast

Based on last week’s price action and the close at 2919.00, the direction of the December E-mini S&P 500 Index this week is likely to be determined by trader reaction to the steep uptrending Gann angle at 2920.75.

Bullish Scenario

A sustained move over 2920.75 will indicate the presence of buyers. If this move can generate enough upside momentum, we should see a test of the all-time high at 2947.00.

Bearish Scenario

A sustained move under 2920.75 will signal the presence of sellers. The first target is the short-term pivot at 2908.75. The weekly chart opens up to the downside under this level with 2877.00, 2871.25 and 2869.50 the next likely downside targets.

The minor bottom at 2869.50 is also a trigger point for an acceleration to the downside with 2821.75 the next 50% target.

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