E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – December 3, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open sharply higher. The index gapped higher on the daily and weekly chart on the opening. The move was a reaction to the bullish event over the week-end. At the G20 summit in Argentina, the United States and China agreed to a 90-day truce regarding their trade dispute.

E-mini S&P 500 Index
Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, today’s early rally has put the index in a position to take out the last main top at 2818.00. A move through this level will change the main trend to up. This is followed by the next main top at 2824.25.

The minor trend is up. This is helping to generate today’s upside momentum.

The main range is 2947.00 to 2603.00. The index is currently testing its retracement zone at 2775.00 to 2815.50.

The major retracement zone support is 2748.50 to 2701.75.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the main Fibonacci level at 2815.75.

Bullish Scenario

Taking out and sustaining a rally over 2815.75 will indicate the presence of buyers. Taking out 2818.00 will change the main trend to up. This will also signal that the buying is getting stronger. The next target is the main top at 2824.25. This is the trigger point for an acceleration to the upside with 2947.00 the next major upside target.

Bearish Scenario

The inability to overcome 2815.75 will signal the presence of sellers. If this creates enough downside momentum then look for a potential break into the main 50% level at 2775.00.

If 2775.00 fails as support then look for selling to possibly extend into the major 50% level at 2748.50. The daily chart opens up to the downside under this level with the next target coming in at 2701.75.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.