E-mini S&P 500 Index (ES) Futures Technical Analysis – December 15, 2017 Forecast

March E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. Investors seem to be shrugging off concerns over a possible delay in the tax reform bill. Today is also Quadruple Witch Day so we could see some volatility near the close.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2675.50 will signal a resumption of the uptrend. A move through 2651.75 will indicate the selling pressure is getting stronger.

The main range is 2622.50 to 2675.50. Its retracement zone is 2649.00 to 2642.75. Since the main trend is up, buyers could come in on a test of this zone. If sellers take it out then momentum will shift to the downside, making 2622.50 the next major target.

The short-term range is 2675.50 to 2651.75. Its retracement zone at 2663.75 to 2666.50 is the first upside target. This zone is currently being tested. Aggressive counter-trend sellers may try to stop the rally on a test of this zone. They want to form a secondary lower top.

Daily Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the 50% level at 2663.75.

A sustained move over 2663.75 will indicate the presence of buyers. This could trigger a quick move into the Fib level at 2666.50, followed closely by a downtrending Gann angle at 2667.50.

Overtaking 2667.50 could trigger an acceleration into the next downtrending Gann angle at 2671.50. This is the last potential resistance angle before the 2675.50 main top.

A sustained move under 2663.75 will signal the presence of sellers. The daily chart is open to the downside with the first target 2651.75, followed by an uptrending Gann angle at 2650.50 and a 50% level at 2649.00. The latter is the trigger point for an acceleration into 2642.75 then 2640.50.