Dec E-Mini S&P: The market rose for a third consecutive day on Tuesday, gaining 11 points to close at 1169, just below its 20-day moving average at 1174. The retracement move has now run into congestion and faces the key daily downtrend line at 1196. In addition, trade is flipping on either side of the 20-day MA indicating the Bulls are beginning to struggle. That said, we are looking at a moderately Bearish bias today, though one more pop to the daily downtrend is possible.

Light short scalping against 1182-1185 R1 and 1190 R2 Resistance zones is suggested with Stops 2 points above each zone. A solid short is suggested on the first test of 1196 R3 Resistance (downtrend) with Stops above 1198. Targets are initially at 1171-1169 S1 and 1159-1155 S2. Trade below 1155 accelerates selling to 1140-1138 S3 and potentially breaks down to lower S4 and S5 listed targets.

On the upside, buyers can lightly scalp off of 1171-1169 S1 Support, Stops below 1167 suggested. A test and hold of 1159-1155 S2 Support does present a decent Long set-up for continuation rallies possibly hitting R1 to R3 listed targets. Stops S2 Longs below 1153. The upside break of 1196 R3 resumes the Bull leg targeting 1204 R4 to 1215 R5 upper Resistance zones.

Daily Chart:

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