E-mini S&P 500 Index (ES) Futures Technical Analysis – November 20, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open lower based on the early trade. Momentum is clearly to the downside after the index crossed to the weak side of several retracement levels that were previously providing support.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out the closing price reversal bottom at 2671.25.

The minor trend is also down. A trade through 2748.75 will change the minor trend to up and signal a shift in momentum.

The short-term range is 2603.00 to 2818.00. The index is currently trading on the weak side of its retracement zone at 2685.25 to 2710.50. This levels are new resistance.

Inside the short-term retracement zone is a major Fibonacci level at 2701.75. This level is also resistance.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index on Tuesday is likely to be determined by yesterday’s close at 2696.25.

Bearish Scenario

A sustained move under 2696.25 will signal the presence of sellers. Taking out 2685.25 and 2671.25 is a sign of increasing selling pressure.

The daily chart is wide open under 2671.25 with the next major targets the October 29 bottom at 2603.00 and the May 3 bottom at 2602.75.

Bullish Scenario

Sustained moves over 2671.25 and 2685.25 will indicate the selling is getting weaker.

Turning higher for the session over 2696.25 will indicate the buying is beginning to pick-up. It will also put the index in a position to post a potentially bullish closing price reversal bottom.

The window of time for a closing price reversal bottom is usually 7 to 10 days from a top. Today is the eighth day down.

The short-covering could increase over 2696.25 with the next targets 2701.75 and 2710.50.

The trigger point for an acceleration to the upside is 2710.50.