E-mini S&P 500 Index (ES) Futures Technical Analysis – December 07, 2017 Forecast

March E-mini S&P 500 Index futures are trading nearly flat as we approach the cash market opening. Yesterday, the major indexes traded mixed as investors awaited further developments concerning tax reform. This issue is likely to continue to influence the trade today as well as concerns over a possible government shutdown on Saturday.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, short-term momentum has shifted to the downside. The index also remains under the influence of the potentially bearish closing price reversal top, formed on December 4.

A trade through 2667.25 will negate the chart pattern and signal a resumption of the uptrend. A move through 2622.50 will change the minor trend to down, followed by another main bottom at 2606.25.

The main range is 2556.50 to 2667.25. Its retracement zone at 2611.75 to 2598.75 is the primary downside target. Since the main trend is up, buyers are likely to come in on a test of this retracement zone.

The minor range is 2667.25 to 2622.50. Its retracement zone at 2645.00 to 2650.25 is the primary upside target. Aggressive counter-trend sellers are going to try to stop the market on a test of this zone in an effort to form a secondary lower top. Buyers are going to try to drive the market through this zone.

Daily Technical Forecast

Based on the early trade, a new minor bottom has formed at 2622.50. If the rally continues then look for a test of a downtrending angle at 2643.25. This is followed by a 50% level at 2645.00 and a Fibonacci level at 2650.25.

The rally could pick up traction over 2650.25 with potential target angles coming in at 2655.25 and 2661.25. The latter is the last potential resistance angle before the 2667.25 main top.

The first major downside target is an uptrending Gann angle at 2616.50. This is followed by a 50% level at 2611.75. The daily chart starts to open up to the downside under this level with potential targets at 2606.25 and 2598.75.