E-mini S&P 500 Index (ES) Futures Technical Analysis – November 14, 2017 Forecast

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Traders are saying the lack of clarity over tax reform is keeping some investors on the sidelines while encouraging others to pare positions.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside last week when the minor trend changed to down.

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 short-term range is 2594.50 to 2563.25. The trade under its 50% level or pivot at 2579.00 is helping to give the market a downside bias.

The intermediate range is 2541.50 to 2594.50. Its retracement zone at 2568.00 to 2561.75 is the next downside target. This zone stopped the selling last week when the index reached 2563.25.

Daily Technical Forecast

Based on the early trade, the direction of the market today is likely to be determined by trader reaction to the pivot at 2579.00.

A sustained move under 2579.00 will indicate the presence of sellers. If this move creates enough downside momentum, we could see a further break into 2568.00 and 2561.75. We could see a technical bounce on the first test of this area.

If 2561.75 fails then look for the selling to extend into the long-term uptrending angle at 2588.50.

Overcoming 2579.00 and sustaining the rally will signal the presence of buyers. This is followed closely by a short-term downtrending angle at 2582.50. Overtaking this angle could drive the market into the next downtrending angle at 2588.50. This is the last potential resistance angle before the 2594.50 main top.