E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis Forecast – Move Under 3592.25 Shifts Momentum to Down

December E-mini S&P 500 Index futures are trading higher at the mid-session on Tuesday as better-than-expected factory data from China and hopes that a COVID-19 vaccine will be rolled out before the end of the year bolstered bets of a speedy economic recovery.

Investors seem to be overlooking a resurgence in infections in the United States that has prompted state-wise restrictions, with California considering new “stay-at-home’ orders.

At 15:54 GMT, December E-mini S&P 500 Index futures are trading 3663.25, up 40.00 or +1.16%.

Investors are closely following updates on a handful of leading vaccine candidates as well as the start of global shipments as drugmakers submit paperwork for regulatory approvals. Pfizer Inc gained about 2.3% in premarket trade as the drugmaker and Germany’s BioNTech SE sought emergency approval of their vaccine from the European regulator.

Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend resumed after about three weeks of sideways price action when buyers took out the November 9 main top at 3668.00. The main trend will change to down when sellers take out the main bottom at 3225.00.

The minor trend is also up. A trade through 3592.25 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 3225.00 to 3675.50. Its retracement zone at 3450.25 to 3397.00 is support. This zone will move up as the market moves higher.

Daily Swing Chart Technical Forecast

The index hit a new all-time high on Tuesday. Since this is technically a breakout, we’d like to see buyers continue to drive it higher through this level since there is no true resistance.

A break back under 3668.00 will be a sign that the buying is getting weaker or the selling is getting stronger. This could drive the index into yesterday’s close at 3623.25.

A close under 3623.25 will form a potentially bearish closing price reversal top. This won’t change the trend, but it could trigger the start of a short-term correction.

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

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.