E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 4328.25 Sets Tone into Close

December E-mini S&P 500 Index futures are trading sharply lower at the mid-session on Thursday after giving back earlier gains. Traders said the weakness could be related to end-of-the-month and end-of-the-quarter position-squaring.

Concerns about inflation and supply chain issues continued to hamper stocks. Energy and financial stocks, which have been some of the best performers in recent weeks, took a step back on Thursday.

At 16:52 GMT, December E-mini S&P 500 Index futures are trading 4316.75, down 33.00 or -0.76%.

In stock related news, Walgreens Boots Alliance and Home Depot fell more than 2%. Shares of Goldman Sachs and JPMorgan were down by more than 1%.

Daily December E-mini S&P 500 Index

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. A trade through 4293.75 will reaffirm the downtrend. A move through 4472.00 will change the main trend to up.

The main range is 4117.00 to 4539.50. Its retracement zone at 4328.25 to 4278.50 is currently being tested. This zone is potential support. It stopped the selling at 4293.75 on September 20.

The minor range is 4293.75 to 4472.00. Its 50% level or pivot at 4383.00 is resistance. This level stopped the buying at 4389.00 earlier in the session.

The short-term range is 4539.50 to 4293.75. Its retracement zone at 4416.75 to 4445.75 is additional resistance.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index into the close on Thursday will be determined by trader reaction to the 50% level at 4328.25.

Bearish Scenario

A sustained move under 4328.25 will indicate the presence of sellers. The first downside target is the main bottom at 4293.75, followed by the main Fibonacci level at 4278.50.

Taking out 4278.50 could trigger an acceleration to the downside with the next target a main bottom at 4214.50.

Bullish Scenario

A sustained move over 4328.25 will signal the presence of buyers. If this move generates enough upside momentum then look for a possible late session surge into 4383.00. Overtaking this level will indicate the buying is getting stronger with 4416.75 – 4445.75 the next likely target zone.

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

This article was originally posted on FX Empire