E-mini S&P 500 Index (ES) Futures Technical Analysis – Key Retracement Zone Support at 3246.25 – 3168.50
December E-mini S&P 500 Index futures are nudging higher late in the session on Tuesday. The index is posting an inside move following yesterday’s plunge, suggesting investor indecision and impending volatility. The benchmark index is being supported by a bounce in shares of Amazon.com and Apple, but gains are being capped by uncertainty over more U.S. fiscal stimulus.
At 19:38 GMT, December E-mini S&P 500 Index futures are trading 3303.25, up 28.25 or +0.86%.
Seven of the 11 major S&P 500 indexes were trading higher, with real estate and consumer discretionary leading gains.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 3217.75 will signal a resumption of the downtrend. The main trend will change to up on a move through 3419.50.
The main range is 2916.50 to 3576.25. Its retracement zone at 3246.25 to 3168.50 is potential support. It stopped the selling at 3217.75 on Monday. Also inside this zone are a pair of main bottoms at 3184.75 and 3181.75.
The minor range is 3419.50 to 3217.75. Its 50% level at 3318.75 could become a pivot later this week.
The short-term range is 3576.25 to 3217.75. Overcoming the pivot could lead to a test of its retracement zone at 3397.00 to 3439.25.
Short-Term Outlook
The inside move and holding between a pair of 50% levels at 3246.25 to 3318.75 indicates investor indecision and impending volatility. This chart pattern also indicates that today may be a reassessment day as traders assess whether the current pullback has further downside potential.
A sustained move over 3318.75 will indicate the presence of buyers. This could trigger an acceleration to the upside with the first target a short-term 50% level at 3397.00.
A failure at 3246.25 will signal the presence of sellers, but this could lead to a labored break with potential downside targets coming in at 3217.75, 3184.75 and 3181.75, followed by the Fibonacci level at 3168.50.
The Fib level at 3168.50 is most important because it is also the trigger point for an acceleration to the downside with potential targets at 3095.00, 2972.00 and 2916.50.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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