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E-mini S&P 500 Index (ES) Futures Technical Analysis – November 13, 2017 Forecast

By:
James Hyerczyk
Published: Nov 13, 2017, 14:13 UTC

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Investors are reacting to the winding down of earnings

E-mini S&P 500 Index

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Investors are reacting to the winding down of earnings season and a possible delay in tax reform.

Earlier today, General Electric announced a broad restructuring while forecasting lower earnings, fewer board seats and promising a leaner operation. It also cut its dividend by 50%.

E-mini S&P 500 Index
Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted lower when the minor trend changed to down on November 9.

A trade through 2594.50 will signal a resumption of the uptrend. A move through 2563.25 will indicate the selling is getting stronger. The next major downside target comes in at 2541.50.

The main range is 2541.50 to 2594.50. Its retracement zone at 2568.00 to 2561.75 is the first downside target. This zone stopped the rally last week when the market hit its low at 2563.25. Since the main trend is up, buyers may show up again on a test of this zone.

The short-term range is 2594.50 to 2563.25. Its 50% level or pivot is 2579.00. After straddling this price on Friday and earlier today, the index broke lower.

Daily Technical Forecast

Based on the current price at 2572.50 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the pivot at 2579.00.

A sustained move under 2579.00 will signal the presence of sellers. This could trigger a move into the main 50% level at 2568.00, followed by last week’s low at 2563.25 and the Fibonacci level at 2561.75.

If 2561.75 fails then look for the selling to continue with the next target angle coming in at 2555.00

Overcoming 2579.00 and sustaining the rally will signal the presence of buyers. If this generates enough upside momentum then look for a possible rally into last week’s high at 2594.50.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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