E-mini S&P 500 Index (ES) Futures Technical Analysis – November 19, 2018 Forecast

December E-mini S&P 500 Index futures are trading nearly flat as we approach the cash market opening. The market is trading inside Friday’s range which suggests investor indecision and impending volatility. The key level controlling the direction of the market is 50% of the 2018 range.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum may have shifted to the upside with the formation of the closing price reversal bottom on Thursday and the subsequent confirmation on Friday.

A trade through 2818.00 will change the main trend to up. The next main top at 2824.25 is a potential trigger point for an acceleration to the upside.

A trade through 2671.25 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The major retracement zone is 2748.50 to 2701.50. This zone is controlling the near-term direction of the index. The longer the index sits in this range, the more volatile the reaction once it is taken out.

The short-term retracement zone at 2710.50 to 2685.00 is support.

Another retracement zone at 2775.00 to 2815.50 is resistance.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 2748.50.

Bullish Scenario

A sustained move over 2748.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into the next 50% level at 2775.00.

Bearish Scenario

A sustained move under 2748.50 will signal the presence of sellers. The next targets are a 50% level at 2710.50, followed by a Fibonacci level at 2701.50.