E-mini S&P 500 Index (ES) Futures Technical Analysis – November 22, 2017 Forecast

December E-mini S&P 500 Index futures opened slightly higher on Wednesday in reaction to stronger-than-expected quarterly results from Tractor maker Deere, HP Enterprise, Salesforce and Gamestop.

Wall Street traders are now awaiting the release of the Fed minutes from its meeting earlier this month at 1900 GMT.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2600.50 will signal a resumption of the uptrend. The only chart pattern that can disrupt the strong upside momentum is the closing price reversal top.

The new short-term range is 2555.50 to 2600.50. If there is a meaningful sell-off later today then its retracement zone at 2578.00 to 2572.50 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the index the rest of the session will be determined by trader reaction to the steep uptrending angle at 2595.50.

A sustained move over 2595.50 will indicate the presence of buyers. This could create enough upside momentum to challenge yesterday’s high at 2600.50.

A sustained move under 2595.50 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside if this angle is taken out with conviction. This could trigger an acceleration to the downside with the next major targets 2578.00 and 2575.50.

Watch the price action and read the order flow at 2595.50 today. Trader reaction to this angle will tell us if the buying is getting stronger, or if the bearish sellers are taking control.