E-mini S&P 500 Index (ES) Futures Technical Analysis – Strong Over 2603.00, Weak Under 2594.50
December E-mini S&P 500 Index futures settled higher at the end of the holiday-shortened week. The rally was primarily driven by optimism over this year’s holiday season. This week, the focus is likely to return to U.S. tax reform. Any uncertainty over this issue could lead to a mild set-back.
Daily Swing Chart Analysis
The main trend is up according to the daily swing chart. After a setback earlier in the month, the uptrend resumed last week when buyers took out the previous top at 2594.50. This level is new minor support.
A trade through 2555.50 will change the main trend to down.
The new short-term range is 2555.50 to 2603.00. Its retracement zone comes in at 2579.25 to 2573.50.
The new intermediate range is 2485.00 to 2603.00. Its retracement zone is 2544.00 to 2530.00.
The new main range is 2414.00 to 2603.00. Its retracement zone is 2508.50 to 2486.25.
Daily Swing Chart Forecast
A trade through 2603.00 will signal a resumption of the uptrend. There is no upside target at this time.
Taking out 2603.00 then breaking back below the previous close at 2601.00 will be the first sign of weakness. If the market closes lower for the session then a potentially bearish closing price reversal top will form.
A trade under the previous top at 2594.50 will also be a sign of weakness. This move will tell us that last week’s rally was driven by weak buyers.
If the 2555.50 to 2603.00 range remains intact then we could see a break into its retracement zone at 2579.25 to 2573.50. Since the main trend is up, buyers are likely to come in on a test of this zone.
Traders will have a couple of choices today, buy strength or play for a pullback into support.
This article was originally posted on FX Empire
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