Downside pressure continued to mount on the December E-mini S&P 500 overnight as traders continued to shed risky assets amid speculation of debt woes in the Euro Zone. Without major economic releases to follow and a Treasury Bond market to lean on because of the U.S. Veteran’s Day holiday, thin market conditions and low volume could lead to volatility.
Based on the main range of 1167.75 to 1224.75, traders should watch for a possible break into a retracement zone at 1196.25 to 1189.50.
This morning, the E-mini S&P 500 is toying with an uptrending Gann angle at 1211.75. This is the last major support as the next angle comes in at 1189.75, followed by 1178.75. Combined with the .618 retracement level, 1189.75 to 1189.50 forms a major support cluster.