E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3677.50, Weakens Under 3592.00

December E-mini S&P 500 Index futures are trading flat at the mid-session as fewer-than-expected private job additions in November added to concerns about the near-term pressure on the economy.

The weakness in the private jobs report is the latest sign that soaring new infections and business restrictions were hampering the labor market’s recovery. The more crucial employment report is expected on Friday.

At 16:45 GMT, December E-mini S&P 500 Index futures are trading 3660.25, down 0.25 or -0.01%.

Private payrolls grew by 307,000 in November, a decline from the 404,000 the previous month, ADP reported. The total was well below the Dow Jones estimate of 475,000. Hospitality led the way in job creation, adding 95,000 positions despite increasing pressure on bars and restaurants as coronavirus cases rise.

Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3677.50 will signal a resumption of the uptrend. The main trend will change to down on a trade through the nearest 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 first minor range is 3592.25 to 3677.50. Its 50% level at 3634.75 is support.

The second minor range is 3506.50 to 3677.50. Its 50% level at 3592.00 is a second support zone. This is also a potential trigger point for an acceleration to the downside.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index futures contract into the close is likely to be determined by trader reaction to 3634.75.

Bullish Scenario

A sustained move over 3734.75 will indicate the presence of buyers. This could lead to a retest of 3677.50 and a potential acceleration to the upside.

Bearish Scenario

A sustained move under 3734.75 will signal the presence of sellers. This could trigger a sharp break into the support cluster at 9592.25 to 3592.00. Look for a technical bounce on the first test of this area.

If 3592.00 fails as support then look for a potential acceleration into the next minor bottom at 3542.25.

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.