E-mini S&P 500 Index (ES) Futures Technical Analysis – Extremely Bullish Over 2532.00, Weak Under 2510.00
The December E-mini S&P 500 Index futures contract overcame early weakness to hit a record high and to post a record close last week. The close just shy of the high suggests the week finished with strong upside momentum. This should be enough to trigger a follow-through rally this week.
Weekly Technical Analysis
The main trend is up according to the weekly swing chart. A trade though last week’s high at 2517.75 will signal a resumption of the uptrend.
The trend is safe at this time with the nearest main bottom at 2414.00. However, the index is up five weeks from its last main bottom which puts it pretty close to the window of time, which is often associated with potentially bearish closing price reversal tops.
Weekly Forecast
Based on Friday’s close at 2516.00, the direction of the index this week is likely to be determined by uptrending angles at 2532.00 and 2510.00.
The first upside target is the long-term uptrending angle at 2532.00. Crossing to the strong side of this angle will put the index in an extremely bullish position.
The nearest downside target is a steep short-term uptrending angle at 2510.00. The rally should continue if this angle holds as support. It has been guiding the index higher since the week-ending August 25.
If the angle at 2510.00 fails and the selling pressure increases then we could see an acceleration to the downside with the next target angle coming in at 2462.00.
Basically, look for an extremely bullish market on a sustained move over 2532.00 and for increased selling pressure on a sustained move under 2510.00.
This article was originally posted on FX Empire