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E-mini S&P 500 Index (ES) Futures Technical Analysis – Sustained Move Over 3014.75 Shifts Momentum to Upside

James Hyerczyk

December E-mini S&P 500 Index futures are trading higher shortly before the cash market opening after reversing earlier weakness. The market was under pressure most of the pre-market session as investors expressed disappointment in the Fed’s monetary policy decisions from Wednesday. Buyers came in on Thursday following a surge in shares of Microsoft and AT&T.

At 13:14 GMT, December E-mini S&P 500 Index futures are at 3013.50, up 5.00 or +0.17%.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 3025.75 on September 13.

A trade through 3025.75 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 2958.75 will change the main trend to down.

The minor trend is up. A trade through 2980.75 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 3025.75 to 2980.75. Its 50% level or pivot at 3003.25 is support.

The short-term range is 2958.75 to 3025.75. Its 50% level at 2992.25 is additional support.

The main range is 2811.00 to 3025.75. If the trend changes to down then its retracement zone at 2918.25 to 2893.00 will become the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at 3013.50, the direction of the December E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 3014.75.

Bullish Scenario

Overtaking 3014.75 and sustaining the move will indicate the buying is getting stronger. This could create enough upside momentum to challenge the main top at 3025.75 and the all-time high at 3032.25.

Bearish Scenario

A sustained move under 3014.75 will signal the presence of sellers. This could create a labored break with potential targets lined up at 3003.25, 2992.5 and 2986.75.

Taking out 2986.75 could trigger a break through 2980.75. This could lead to an acceleration to the downside with targets coming in at 2958.75 and 2947.00.

This article was originally posted on FX Empire

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