December E-mini S&P 500 Index futures posted another new high close on Thursday, but once again the new high was only marginally higher. The fundamentals are a little mixed at this time with investors excited with the start of earnings seasons, but a little worried about President Trump’s tax reform plan getting passed and the possibility of escalating tensions over North Korea.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The market isn’t close to turning the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top.
If the short-term range remains 2485.00 to 2553.50 then its retracement zone at 2519.25 to 2511.00 will become the primary downside target.
Daily Forecast
Based on yesterday’s close at 2553.00, the direction of the index today is likely to be determined by trader reaction to the contract high at 2553.50.
Taking out 2553.50 will signal a resumption of the uptrend. If the buying volume continues to increase then look for a sustained move over this level. If the volume is light and the rally fails and the market turns lower for the session, we could see a closing price reversal top form.
There is no upside target, however, the first two support angles come in at 2543.25 and 2537.00. We could see a technical bounce on the first test of these angles, but if 2537.00 fails as support then lookout to the downside.
Taking out 2537.00 could trigger an acceleration to the downside with 2519.25 the next major downside target.
This article was originally posted on FX Empire