E-mini S&P 500 Index (ES) Futures Technical Analysis – November 2, 2015 Forecast

December E-mini S&P 500 index futures are trading unchanged during the pre-market session. The market opened steady then sold-off early, however, the lack of follow-through to the downside triggered a short-covering rally which brought the index back to unchanged.

On Friday, the index posted a potentially bearish closing price reversal top. This is an indication that the selling may be greater than the buying at current price levels, but not necessarily that a change in trend is imminent.

Earlier in the session, the index traded through 2069.75. This confirmed the closing price reversal top. The direction of the market today is likely to be determined by trader reaction to this price the rest of the session.

Based on Friday’s close at 2073.75, the first upside target is a steep uptrending angle at 2086.50. This is followed by the closing price reversal top at 2094.75, the August 18 main top at 2095.50 and the July 31 main top at 2101.25.

A sustained move under 2069.75 will indicate the presence of sellers. The daily chart indicates there is plenty of room to the downside under this level with the next target a longer-term uptrending angle at 2053.00.

The new short-term range is 1982.50 to 2094.75. Now that the reversal top has been confirmed, the primary objective is its retracement zone at 2038.50 to 2025.25.

Watch the price action and read the order flow at 2069.75 today. This will tell us whether the bulls or the bears are in control today.