E-mini S&P 500 Index (ES) Futures Technical Analysis – Major Pivot at 2580.00 This Week
December E-mini S&P 500 Index futures posted a weekly closing price reversal top last week. This potentially bearish chart pattern does not mean the main trend is getting ready to turn down, but it could be an indication that the selling is greater than the buying at current price levels.
Weekly Technical Analysis
The main trend is up according to the weekly swing chart. However, momentum may have shifted to the downside with the formation of the closing price reversal top.
Your capital is at risk
A trade through 2594.50 will negate the chart pattern and signal a resumption of the uptrend.
A trade through 2563.25 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 week break with the main target 50% to 61.8% of the last rally.
The main range is 2414.00 to 2594.50. Its retracement zone at 2504.25 to 2483.00 is the primary downside target.
Weekly Technical Forecast
Based on last week’s close at 2579.50, the direction of the index this week is likely to be determined by trader reaction to the uptrending angle at 2580.00.
A sustained move under 2580.00 this week will indicate the presence of sellers. This could trigger a break into last week’s low at 2563.25.
Taking out 2563.25 will confirm the reversal top and it could trigger an acceleration to the downside.
The weekly chart indicates there is plenty of room to the downside under 2563.25 with the first target angle coming in at 2606.00, followed by a 50% level at 2504.25 and a Fibonacci level at 2483.00.
A sustained move over 2580.00 this week will signal the presence of buyers. If this move generates enough upside momentum then look for buyers to go after last week’s high at 2594.50 then a steep uptrending angle at 2606.00.
Crossing to the strong side of the angle at 2606.00 will put the index in an extremely bullish position.