December E-mini S&P 500 Index futures are called higher based on the pre-market trade. Strong earnings reports from United Technologies and Procter & Gamble are helping to generate the upside bias, while a disappointing report from McDonald’s is weighing on prices. So far, more than 18% of S&P 500 companies have reported quarterly numbers. Of those companies, nearly 80% have beaten analyst earnings expectations.
At 13:23 GMT, December E-mini S&P 500 Index futures are trading 3012.00, up 5.50 or +0.17%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed early today when buyers took out the minor tops at 3008.00 and 3012.25.
The market is in no position to change the trend to down, but it is up 14 sessions from its last main bottom, which puts it in the window of time for a potentially bearish closing price reversal top. This chart pattern won’t change the trend to down either, but it can trigger the start of a 2 to 3 day correction.
The minor trend is also up. A trade through 2975.00 will change the minor trend to down. This will also shift momentum to the downside.
The support is a retracement zone at 2960.25 to 2940.00.
Daily Technical Forecast
Based on the early price action and the current price at 3012.00, the direction of the December E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by the uptrending Gann angle at 3009.75.
A sustained move over 3009.75 will indicate the presence of buyers. If this move can generate enough upside momentum then look for buyers to take a run at the main top at 3025.75 and the all-time high at 3032.25.
A sustained move under 3009.75 will signal the presence of sellers. This could lead to a test of the downtrending Gann angle at 2998.75. This angle is a potential trigger point for an acceleration to the downside with the next targets the minor bottom at 2975.00, a downtrending Gann angle at 2971.75 and the main Fibonacci level at 2960.25.
This article was originally posted on FX Empire
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