E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3089.25, Weakens Under 3072.75
December E-mini S&P 500 Index futures are trading slightly lower early Wednesday. The market is trading inside yesterday’s range, which suggests investor indecision and impending volatility.
This week’s sell-off is being fueled by weaker-than-expected ISM US Manufacturing data and worries over U.S.-China trade relations after President Trump said on Tuesday he could wait until after the 2020 Presidential Elections to sign a trade deal with China.
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At 07:52 GMT, December E-mini S&P 500 Index futures are at 3084.50, down 6.50 or -0.21%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of the closing price reversal top on December 2 at 3158.00 and the subsequent confirmation on Tuesday.
The main trend will change to down on a trade through 3020.25. A move through 3158.00 will negate the closing price reversal top and signal a resumption of the uptrend.
The minor trend is down. It turned down on Tuesday. This move confirms the shift in momentum to down.
The short-term range is 3020.25 to 3158.00. Its retracement zone at 3089.00 to 3072.75 is currently being tested. The lower or Fibonacci level stopped the selling on Tuesday at 3069.50.
The main range is 2855.00 to 3158.00. Its retracement zone at 3006.50 to 2970.75 is the next potential downside target and support. If investors are looking for value, they could start buying again on a test of this zone.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at 3084.50, the direction of the December E-mini S&P 500 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the 50% level at 3089.00.
Bullish Scenario
A sustained move over 3089.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a rebound rally into a minor 50% level at 3113.75. Sellers could return on a test of this level. They are going to try to form a secondary lower top.
Bearish Scenario
A sustained move under 3089.00 will signal the presence of sellers. The first targets are 3072.75, 3069.50 and a minor bottom at 3063.00.
Taking out 3063.00 could trigger an acceleration to the downside with the next targets a main bottom at 3020.25 and a main 50% level at 3006.50.