December E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The index hit a record high early Thursday after China said the world’s largest economies had agreed to remove existing trade tariffs. The news that both economic powerhouses had agreed to simultaneously cancel some existing tariffs on one another’s goods, according to the country’s state broadcaster, helped offset worries over the timing and venue of the signing of “Phase One” of a U.S.-China trade deal. This news had helped put a lid on the index earlier in the week.
At 14:31 GMT, December E-mini S&P 500 Index futures are trading 3088.50, up 13.00 or +0.44%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out the closing price reveal top at3085.75. This signaled a resumption of the uptrend. The main trend will change to down on a move through 3020.25.
The minor trend is also up. It will change to down on a trade through 3056.25. This will also shift momentum to the downside.
The new minor range is 3020.25 to 3092.50. Its retracement zone at 3056.25 is the first downside target. Since the main trend is up, buyers are likely to come in on a test of this level.
Daily Technical Forecast
Based on the early price action and the current price at 3088.50, 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 yesterday’s close at 3075.50.
A sustained move over 3075.50 will indicate the presence of buyers. The first upside target is a steep uptrending Gann angle at 3100.25. Overtaking this angle will put the index in a bullish position.
A sustained move under 3075.50 will put the index in a position to form a potentially bearish closing price reversal top. This could drive the index into an uptrending Gann angle at 3060.25, followed by the short-term pivot at 3056.25 and another uptrending Gann angle at 3055.00.
The angle at 3055.00 is a potential trigger point for an acceleration to the downside with the next major downside target angle coming in at 3046.75.
This article was originally posted on FX Empire
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