E-mini S&P 500 Index (ES) Futures Technical Analysis – October 28, 2016 Forecast

December E-mini S&P 500 Index futures are likely to open slightly higher on Friday based on the pre-market trade. Traders are responding to a slew of corporate earnings reports and the release of a better-than-expected GDP report. It came in at 2.9 percent, inside the expected range, but higher than the 2.5% consensus. At 1400 GMT, traders will get the opportunity to react to the latest consumer sentiment figures.

Technical Analysis

The main trend is down according to the daily swing chart. The trend will turn up on a trade through 2149.75. A move through 2107.75 will signal a resumption of the downtrend with 2107.75 the next downside target.

The short-term range is 2107.75 to 2149.75. Its retracement zone is 2128.75 to 2123.75. This zone is likely to control the direction of the index today. A sustained move over 2128.75 will give the index an upside bias. A sustained move under 2123.75 will give the index a downside bias.

The main range is 2182.75 to 2100.25. Its retracement zone at 2141.50 to 2151.25 is the primary upside target. This zone stopped a rally earlier in the week at 2149.75.

Forecast

Based on the current price at 2126.25 and the earlier two-sided price action, the direction of the market today is likely to be determined by trader reaction to the short-term 50% level at 2128.75.

A sustained move over 2128.75 will indicate the presence of buyers. Crossing to the strong side of the uptrending angle at 2129.75 could trigger a surge into the downtrending angle at 2137.75. This is followed by a resistance cluster at 2141.50 to 2143.75.

A sustained move under 2128.75 will signal the presence of sellers with the next target the short-term Fibonacci level at 2123.75. This is followed by an uptrending angle at 2118.75, a low at 2116.00 and an uptrending angle at 2113.75. This is the last potential support angle before the 2107.75 main bottom.

Watch the price action and read the order flow at 2128.75 today. Trader reaction to this level will tell us if the bulls or the bears are in control.