E-mini S&P 500 Index (ES) Futures Technical Analysis – Closing on Strong Side of Pivot at 4668.50

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December E-mini S&P 500 Index futures are trading higher shortly before the cash market close on Tuesday. The move is being primarily driven by strength in the consumer stock sector after data showed retail sales rose in October as Americans appeared to have started holiday shopping early to avoid empty shelves amid supply chain concerns, giving the economy a lift at the start of the fourth quarter.

At 20:43 GMT, December E-mini S&P 500 Index futures are trading 4703.50, up 24.50 or +0.52%.

In stock related news, Walmart raised its annual sales and profit forecasts. However, its shares fell 1.9% as supply chain woes hit its third-quarter margins. Meanwhile, retailer Home Depot Inc jumped 4% to a record high after beating quarterly same-store sales estimates.

Daily December E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4711.75 will signal a resumption of the uptrend. A move through 4625.25 will change the main trend to down.

The minor range is 4711.75 to 4625.25. The index is currently trading on the strong side of its pivot at 4668.50, making this level support.

The second minor range is 4543.75 to 4711.75. Its 50% level at 4627.75 provides additional support.

The major support levels are layered at 4514.50, 4485.75 and 4432.50.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index early Wednesday is likely to be determined by trader reaction to 4668.50.

Bullish Scenario

A sustained move over 4668.50 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a test of the record high at 4711.75.

Sellers could come in on the first test of 4711.75, but overcoming it could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 4668.50 will signal the presence of sellers. This could trigger a quick break into a support cluster at 4627.75 – 4625.25.

Since the main trend is up, buyers could come in on the first test of this support cluster. If 4625.25 fails to hold then look out to the downside. The daily chart indicates we could see a steep break with the nearest support coming in at 4543.75 and 4514.50.