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E-mini S&P 500 Index (ES) Futures Technical Analysis – Testing Key Retracement Zone at 2940.50 to 2960.50

James Hyerczyk

December E-mini S&P 500 Index futures are called lower based on the early session trade. General nervousness ahead of the start of trade talks between the United States and China is helping to keep many of the major players on the sidelines.

Also keeping a lid on prices is a report from Bloomberg News that said Chinese officials were increasingly reluctant to agree to a broad trade deal pursued by President. Trump reiterated just two weeks ago that he is not interested in agreeing to a “partial deal”.

At 12:43 GMT, December E-mini S&P 500 Index futures are trading 2943.50, down 7.50 or -0.25%.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum shifted to the upside last week with the formation of a closing price reversal bottom at 2855.00 on October 3 and its subsequent confirmation the next session.

The main trend will change to up on a trade through 3025.75. A move through 2855.00 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 2777.00 to 3025.75. Its retracement zone at 2901.25 to 2872.00 is support.

The short-term range is 3025.75 to 2855.00. Its retracement zone at 2940.50 to 2960.50 is potential resistance. This zone is currently being tested. Trader reaction to this zone could determine the near-term direction of the index.

Daily Technical Forecast

Based on the early price action and the current price at 2943.75, the direction of the December E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to the short-term 50% level at 2940.50.

Bullish Scenario

A sustained move over 2940.50 will indicate the presence of buyers. Overcoming the uptrending angle at 2949.00 will indicate the buying is getting stronger. This could trigger a rally into a potential resistance cluster at 2960.50 to 2961.75.

The downtrending Gann angle at 2961.75 is a potential trigger point for an acceleration to the upside with the next target angle coming in at 2993.75.

Bearish Scenario

A sustained move under 2940.25 will signal the presence of sellers. This could trigger the start of a 50% correction of the two day rally. This comes in at 2904.00, followed by the main 50% level at 2901.25.

This article was originally posted on FX Empire