December E-mini S&P 500 Index futures are higher based on the pre-market trade. The index is currently trading in a position to post a new all-time high. It also begins today's session in the window of time for a potentially bearish closing price reversal top.
The formation of a closing price reversal top will not mean the trend is getting ready to turn to down, but it could indicate that the selling is greater than the buying at current price levels.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 2506.00 will signal a resumption of the uptrend. A move through 2487.00 will change the main trend to down.
Since the index is in the window of time for a potentially bearish closing price reversal top, watch the price action and read the order flow on a test of yesterday's high at 2506.00.
Buyers are going to either takeout 2506.00 and continue the move, or they are going to make a higher-high, lower-close.
So I think we're going to have a strong upside bias on a sustained move over 2506.00 and a downside bias if buyers take out 2506.00 then drive prices back through 2502.75.
Based on the current price at 2504.50 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the steep uptrending angle at 2503.00.
A sustained move over 2503.00 will indicate the presence of buyers. This could lead to a test of yesterday's high at 2506.00. This is the trigger point for a potential acceleration to the upside.
A sustained move under 2503.00 will signal the presence of sellers. This could trigger a break into the next two uptrending Gann angles at 2495.00 and 2491.00.
The angle at 2491.00 is the last potential support angle before the 2487.00 main bottom.
This article was originally posted on FX Empire
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