E-mini S&P 500 Index (ES) Futures Technical Analysis – November 21, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The index is being supported by several factors including firmer markets in Europe, a weaker U.S. Dollar, and higher crude oil prices. These factors are driving up demand for higher risk assets.

At 1238 GMT, December E-mini S&P 500 Index futures are trading 2658.00, up 18.00 or +0.67%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Today is the ninth day down from the last swing top so the session begins with the index inside the window of time for a potentially bullish closing price reversal bottom.

A trade through 2631.75 will signal a resumption of the downtrend. This could trigger a break into a pair of main bottoms at 2603.00 and 2602.75.

The minor trend is also down. A trade through 2748.75 will change the minor trend to up.

Daily Swing Chart Technical Forecast

Based on the early price action, it looks as if the direction of the December E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to yesterday’s low at 2631.75.

Bullish Scenario

A sustained move over 2631.75 will indicate the presence of buyers. If this move can generate enough upside momentum then look for a potential rally into a series of retracement levels at 2685.25, 2701.75 and 2710.50.

Bearish Scenario

A sustained move under 2631.75 will signal the presence of sellers. If this move can create enough downside momentum then look for the selling to continue into 2603.00 to 2602.75.

Closing Price Reversal Bottom

Taking out 2631.75 then closing higher for the day will produce a potentially bullish closing price reversal bottom.