E-mini S&P 500 Index (ES) Futures Technical Analysis – October 27, 2016 Forecast

December E-mini S&P 500 Index futures are called higher shortly before the cash market opening. Earlier today, U.S. weekly initial jobless claims fell 3,000 to 258,000, while durable goods unexpectedly fell.

Pending home sales and housing vacancies are also set to come out at 1400 GMT. Thursday also represents the biggest day of earnings season. Alphabet (Google), Amazon. Com, LinkedIn and Baidu are among companies set to report after the bell.

Technical Analysis

The main trend is down according to the daily swing chart. The main trend will turn up on a trade through 2168.25. A trade through 2149.75 will negate the closing price reversal top and change the minor trend to up. This could trigger an acceleration to the upside.

The main range is 2182.75 to 2100.25. Its retracement zone is 2141.50 to 2151.25. This is the primary upside target. This zone provided resistance earlier in the week when the market topped at 2149.75.

This zone is very important to the longer-term structure of the market. Sellers will try to stop the rally inside this zone in an effort to form a potentially bearish secondary lower top. Buyers are going to try to trigger a breakout through this zone with 2107.75 an important higher bottom.

The short-term range is 2107.75 to 2149.75. Its retracement zone at 2128.75 to 2123.75 is the primary downside target. This zone provided support on Wednesday when the market reached its low at 2124.75.

Forecast

Based on the current price at 2139.50 and the early price action, it looks as if the early momentum is going to be strong enough to challenge the main 50% level at 2141.50.

Overtaking 2141.50 could drive the market into a pair of angles at 2147.75. We could see a technical bounce on the first test of this price cluster. Overtaking this area could trigger a further rally into 2149.75 and 2151.25.

The main Fibonacci level at 2151.25 is the trigger point for a huge breakout to the upside with the next major target coming in at 2165.25.

A failure to overcome 2141.50 will indicate the presence of sellers. The daily chart indicates there is room to the downside with the next target a price cluster at 2128.75 to 2127.75. This area is very important support.