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E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 3350.00 Sets the Tone

James Hyerczyk
·3 minuto per la lettura

December E-mini S&P 500 Index futures are trading higher shortly after the opening on Monday on signs of progress in developing a COVID-19 vaccine and a flurry of multi-billion dollar deals, including reports of Oracle winning the battle for the U.S. arm of TikTok.

The S&P 500 is coming off of two straight weeks of losses, its first such pace of declines since the coronavirus-led crash in March, as investors sold heavyweight technology shares that had powered the benchmark index to record highs in five-months.

At 13:30 GMT, December E-mini S&P 500 Index futures are trading 3363.75, up 40.50 or +1.22%.

Shares of Oracle surged 6% to near record highs in premarket trading, leading gains among the S&P 500 constituents after sources said the cloud services firm was entering a deal with TikTok-owner ByteDance structured as a partnership to navigate geopolitical tensions.

Daily December E-mini S&P 500 Index
Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum may be getting ready to shift to the upside with the formation of the closing price reversal bottom on September 9.

A trade through 3414.00 will confirm the closing price reversal bottom and shift momentum to the upside. A move through 3286.00 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The minor range is 3286.00 to 3414.00. Its 50% level at 3350.00 is controlling the direction of the market today.

The short-term range is 3576.25 to 3286.00. Its retracement zone at 3431.25 to 3465.50 is the primary upside target zone.

The main support zone comes in at 3246.75 to 3168.75.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the 50% level at 3350.00.

Bullish Scenario

A sustained move over 3350.00 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into 3414.00 to 3431.25.

Bearish Scenario

A sustained move under 3350.00 will signal the presence of sellers. This could lead to a break into the minor bottom at 3298.25, followed by the closing price reversal bottom at 3286.00 and the main 50% level at 3246.75.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire