E-mini S&P 500 Index (ES) Futures Technical Analysis – Weakens Under 2748.50, Strengthens Over 2768.25
December E-mini S&P 500 Index futures are trading lower early Monday, putting the index in a position to post its fifth consecutive lower close. Today’s early price has helped form a lower main top at 2824.25. The market is also trading inside the major retracement zone that helped stop the selling on October 11.
At 0553 GMT, December E-mini S&P 500 Index futures are trading 2731.75, down 25.00 or -0.91%.
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Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 2824.25 will change the main trend to up. A move through 2712.25 will signal a resumption of the downtrend. This is followed closely by the June 18 main bottom at 2696.75. If this bottom is taken out, the selling could extend into the May 3 main bottom at 2602.75.
The main range is 2550.00 to 2947.00. Its retracement zone at 2748.50 to 2701.75 is controlling the near-term direction of the index. The index is currently trading inside this zone. This zone also helped provide support at 2712.25 on October 11.
The short-term range is 2712.25 to 2824.25. Its 50% level or pivot is 2768.25.
The intermediate range is 2947.00 to 2712.25. If the trend changes to up then its retracement zone at 2829.75 to 2857.25 will become the next upside target.
Daily Swing Chart Technical Forecast
Based on Monday’s close at 2756.50 and the earlier price action, the direction of the December E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the main 50% level at 2748.50.
A sustained move under 2748.50 will indicate the presence of sellers. If this move creates enough downside momentum then look for a break into the main bottom at 2712.25, followed by the main Fibonacci level at 2701.75 and the June 28 main bottom at 2696.75.
Watch for a technical bounce on a test of 2712.25 to 2696.75. This will be the last buyers defending support.
Look for an acceleration to the downside if 2696.75 fails as support. This is a potential trigger point for an acceleration to the downside with 2602.75 the next major target.