E-mini S&P 500 Index (ES) Futures Technical Analysis – December 12, 2017 Forecast

March E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The market touched a new all-time high at 2668.00 during the pre-market session. This signaled a continuation of the uptrend.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend will turn down on a trade through 2622.50. The prolonged move up in terms of price and time puts the market in the window of time for a potentially bearish closing price reversal top. A close under 2664.50 will form this chart pattern.

The new short-term range is 2622.50 to 2668.00. If there is a correction today then its retracement zone at 2645.25 to 2639.75 will become the primary downside target.

The main range is 2556.50 to 2668.00. Its retracement zone at 2612.25 to 2600.00 is the next major downside target.

Daily Technical Forecast

Based on the current price at 2666.75 and the earlier price action, the direction of the index today will be determined by trader reaction to yesterday’s close at 2664.50.

A sustained move over 2664.50 will indicate the presence of buyers. This could fuel a continuation of the rally.

A sustained move under 2664.50 will signal the presence of sellers. A close under this price will form a closing price reversal top.

If the selling pressure increases under 2664.50 then look for the move to extend into the steep uptrending Gann angle at 2654.40. Taking out this angle could trigger an acceleration into a 50% level at 2645.25. This is followed by a Fibonacci level at 2639.75 and another uptrending Gann angle at 2638.50.

The major uptrending Gann angle comes in at 2628.50.

Now that we’ve made a higher-high, watch the price action and read the order flow at 2664.50 the rest of the session. Trader reaction to this price will tell us whether the buyers or sellers are in control.