December E-mini S&P 500 Index futures are trading sharply higher at the mid-session on Friday, shortly before President Trump’s meeting with Chinese Vice Premier Liu He at the White House at 18:45 GMT. Trump is optimistic ahead of the meeting, saying earlier that talks between the two countries were going “really well.”
At 17:14 GMT, December E-mini S&P 500 Index futures are at 2978.50, up 36.75 or +1.24%.
Investors are also optimistic, driving bank stocks sharply higher with Bank of America and J.P. Morgan Chase more than 2% higher.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the previous main top at 2959.50. The main trend will change to down on a move through 2881.75.
The short-term range is 3025.75 to 2855.00. Its retracement zone at 2960.50 to 2940.25 is support. Holding above this zone is helping to support the strong upside bias. This zone is controlling the near-term direction of the index.
The main support is the retracement zone at 2901.25 to 2872.00. This zone has provided support the last two weeks.
Daily Technical Forecast
Based on the early price action and the current price at 2978.50, the direction of the December E-mini S&P 500 Index into the close on Friday is likely to be determined by trader reaction to the downtrending Gann angle at 2985.75.
A sustained move over 2985.75 will indicate the presence of buyers. This could trigger a rally into the minor top at 2995.00. Taking out this level will indicate the buying is getting stronger with the next target angle coming in at 3005.75. This is the last potential resistance angle before the 3025.75 and 3032.25 main tops.
A sustained move under 2985.75 will signal the presence of sellers. The first two downside targets are the short-term Fibonacci level at 2960.25 and the steep uptrending Gann angle at 2956.00. This is followed by a downtrending Gann angle at 2945.75 and the short-term 50% level at 2940.25.
The 50% level at 2940.25 is the trigger point for a potential acceleration to the downside with the next major targets coming in at 2903.00 and 2901.25.
This article was originally posted on FX Empire