E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 2754.00, Weakens Under 2722.00

December E-mini S&P 500 Index futures settled higher on Friday and in a position to continue the rally, but first it is going to have to chew through a number of potential resistance levels. Secondly, the rally is going to have to get some help from the outcome of the trade talks between the U.S. and China this week-end. The market was underpinned by dovish comments from Fed Chair Jerome Powell, but it’s going to have to get additional help from a new trade deal in order to sustain the upside momentum.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart. The main trend changes to up on a trade through 2818.00. A move through 2626.00 will signal a resumption of the downtrend.

The short-term range is 2818.00 to 2626.00. Its retracement zone at 2722.00 to 2744.75 is controlling the near-term direction of the index.

On the upside, the next target zone is 2775.00 to 2815.50.

Daily Technical Forecast

Based on Friday’s close at 2758.25, the direction of the December E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to the downtrending Gann angle at 2754.00.

Bullish Scenario

A sustained move over 2754.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the 50% level at 2775.00, followed by another downtrending Gann angle at 2786.00.

Look for selling pressure on the first test of 2786.00. Overtaking this angle will target the next downtrending Gann angle at 2802.00. This is the last potential resistance angle before the main Fibonacci level at 2815.50 and the main top at 2818.00.

Bearish Scenario

A sustained move under 2754.00 will signal the presence of sellers. This could drive the index back into a Fibonacci level at 2744.50, followed by the 50% level at 2722.00.

An uptrending Gann angle at 2722.00 forms a support cluster with the 50% level at the same price. This is the most important price on the chart.

If 2722.00 fails as support then look out to the downside with the next potential target angle coming in at 2674.00.

Basically, look for the upside bias to continue on a sustained move over 2754.00 and for a downside bias to develop on a sustained move under 2722.00.

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.