E-mini S&P 500 Index (ES) Futures Technical Analysis – Yesterday’s Close at 3333.75 is Today’s Pivot

December E-mini S&P 500 Index futures are trading nearly flat after the cash market opening Wednesday after clawing back most of its earlier losses. During the pre-market trade, the benchmark index collapsed as a heated first presidential debate pointed to a tough race ahead, with investors also locking in gains on the last day of the third quarter.

At 13:30 GMT, December E-mini S&P 500 Index futures are trading 3332.75, down 1.50 or -0.04%.

Market volatility has steadily climbed higher in the past few weeks as investors grew cautious ahead of the elections and on doubts whether Trump would accept the election’s outcome if he lost.

Today’s volatility could also be the result of quarterly rebalancing of investor portfolios.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3419.50 will change the main trend to up. Taking out 3198.00 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 3363.00 will change the minor trend to up. This will confirm the shift in momentum fueled by the closing price reversal bottom on September 24.

The main range is 2916.50 to 3576.25. Its retracement zone at 3246.25 to 3168.50 is support. It stopped the selling at 3198.00.

The short-term range is 3576.25 to 3198.00. Its retracement zone at 3387.25 to 3431.75 is resistance.

The early price action has turned a pair of minor 50% levels at 3308.75 and 3280.25 into support.

Daily Swing Chart Technical Forecast

The early price action suggests traders are going to use yesterday’s close at 3333.75 as the pivot today especially after probing the downside early in the session and clawing back all of its earlier losses.

Bullish Scenario

A sustained move over 3333.75 will indicate the presence of buyers. The first upside target is the minor top at 3363.00. Taking out this minor top could trigger a rally into the short-term 50% level at 3387.25.

Overcoming 3387.25 will indicate the buying is getting stronger. This could lead to a test of the main bottom and the Fibonacci level at 3431.75. The latter is the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 3333.75 will signal the presence of sellers. This could lead to a retest of the minor 50% levels at 3308.75 and 3280.50. If the latter fails as support then look for the selling to possibly extend into the major support zone at 3246.25 to 3168.50.

For a look at all of today’s economic events, check out our economic calendar.