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E-mini S&P 500 Index (ES) Futures Technical Analysis – Treading Water Above Minor Pivot at 3080.00

James Hyerczyk

December E-mini S&P 500 Index futures are treading water on Friday. The index is trading lower, which puts its five-day winning streak at risk. Nonetheless, it remains in a position to close a little higher for the week. Trade optimism continues to underpin the index, however, gains are being limited by the lack of fresh news regarding the progress of the talks between the United States and China.

At 19:38 GMT, December E-mini S&P 500 Index futures are at 3083.25, down 2.75 or -0.09%.

Daily December E-mini S&P 500 In

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3097.00 will signal a resumption of the uptrend. The main trend will change to down on a move through the nearest main bottom at 3020.25.

Friday’s inside trading range suggests investor indecision and impending volatility.

The minor trend is also up. A trade through 3063.00 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 3063.00 to 3097.00. The market has straddled its 50% level or pivot at 3080.00 all session, but it’s also trading on the strong side of the pivot, giving the index a slight upside bias.

The second minor range is 3020.25 to 3097.00. Its 50% level or pivot at 3058.50 is potential support.

Daily Technical Forecast

Based on Friday’s price action and current price at 3083.25, the only level to worry about is last week’s close at 3063.25. A close below this level will form a weekly closing price reversal top. This won’t change the trend, but it will indicate the selling is greater than the buying at current price levels.

Late in the session, a sustained move over 3080.00 will indicate the presence of buyer, while a sustained move under 3080.00 will signal the return of sellers.

If there is downside pressure the look for a test of the uptrending Gann angle at 3068.25. This is followed closely by a support cluster formed by last week’s close at 3063.25 and another uptrending Gann angle at 3063.00. If this fail as support then look for the selling to possibly extend into the next pivot at 3058.50.

This article was originally posted on FX Empire