Yahoo Finance E-mini S&P 500 Index (ES) Futures Technical Analysis – Direction Being Controlled by Major 50% Level at 2748.50
December E-mini S&P 500 Index futures are trading slightly higher a little after the mid-session after posting a volatile two-sided trade earlier. Helping to boost the index was a better performance in shares of Apple, along with optimism over the renewal of U.S. – China trade talks. A steep plunge in crude oil may be limiting gains.
At 1854 GMT, December E-mini S&P 500 Index futures are trading 2734.75, up 7.00 or +0.26%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 2818.00 will change the main trend to up. A move through 2824.25 will reaffirm the uptrend. This is a potential trigger point for an acceleration to the upside.
The minor trend is also up. A trade through 2699.50 will change the minor trend to down. This will shift momentum to the downside.
The major range is 2550.00 to 2947.00. The market is currently trading inside its retracement zone at 2748.50 to 2710.50. This zone is controlling the longer-term direction of the index.
The main range is 2947.00 to 2603.00. Its retracement zone at 2775.00 to 2815.50 is resistance. This zone stopped the rally last week when the index topped at 2818.00.
The short-term range is 2603.00 to 2818.00. Its retracement zone at 2710.50 to 2685.00 is the primary downside target.
The major Fibonacci level at 2701.75 falls in between the short-term retracement zone at 2710.50 to 2685.00. This form a major support cluster. Aggressive counter-trend buyers could come in on a test of this zone in an effort to form a secondary higher bottom.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the December E-mini S&P 500 Index into the close will be determined by trader reaction to the major 50% level at 2748.50.
A sustained move under 2748.50 will indicate the presence of sellers. If this move creates enough downside momentum then look for a potential break into a series of retracement levels at 2710.50, 2701.75 and 2685.00. Counter-trend buyers could come in on a test of each level, but look out to the downside if 2685.00 fails. This is a potential trigger point for an acceleration to the downside with 2603.00 the next major target.
Overtaking and sustaining a rally over 2748.50 late in the session could drive the index into the main 50% level at 2775.00. This is another potential trigger point for an acceleration into 2815.50 and 2818.00.
This article was originally posted on FX Empire
