E-mini S&P 500 Index Up

E-mini S&P 500 Index (ES) Futures Technical Analysis – Ready to Face Challenge at 4399.75 – 4432.75

December E-mini S&P 500 Index futures are trading higher after the cash market opening on Thursday on the back of better-than-expected earnings reports from Bank of America and other major companies.

Third-quarter earnings season rolled on Wednesday with several big banks reporting financial results before the bell.

Bank of America, Morgan Stanley, Citigroup and Wells Fargo all saw their shares rise in the premarket after beating earnings expectations.

At 13:39 GMT, December E-mini S&P 500 Index futures are trading 4392.00, up 37.00 or +0.85%.

In economic news, a lower-than-anticipated number of weekly jobless claims added to the positive market sentiment. Initial unemployment insurance claims last week totaled 293,000 – the first time the tally fell below the 300,000 level during the pandemic-era.

September’s producer price index, which measures wholesale prices, was lighter than expected, also helping sentiment.

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, momentum is trending higher. A trade through 4472.00 will change the main trend to up. A move through 4260.00 will signal a resumption of the downtrend.

The minor trend is also trending lower. A trade through 4421.50 will change the minor trend to up. This will confirm the shift in momentum. A trade through 4317.25 will indicate increased selling pressure.

The minor range is 4472.00 to 4260.00. The index is currently trading on the strong side of its pivot at 4366.00, making it support.

The major support is a retracement zone at 4328.25 to 4278.50.

The short-term range is 4539.50 to 4260.00. Its retracement zone at 4399.75 to 4432.75 is the primary upside target. Since the main trend is down, sellers could come in on the first test of this area. It stopped the rally at 4421.50 on October 7.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index into the close on Thursday is likely to be determined by trader reaction to 4399.75.

Bullish Scenario

A sustained move over 4399.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible surge into the minor top at 4421.50, followed by the Fibonacci level at 4432.75. This is a potential trigger point for an acceleration into the main top at 4472.00.

Bearish Scenario

A sustained move under 4399.75 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the pivot at 4366.00. If this fails then look for a possible break into the major 50% level at 4328.25.

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.