E-mini S&P 500 Index (ES) Futures Technical Analysis – November 23, 2015 Forecast

December E-mini S&P 500 Index futures are trading lower during the pre-market session. The index is also posting an inside move which suggests investor indecision and impending volatility. Volume could be light today because of the U.S. bank holiday on Thursday. The thin trading conditions, however, could trigger volatile reactions at times so be prepared for a possible two-sided trade.

The main trend is down according to the daily swing chart. Based on Friday’s close at 2088.75, two areas could dictate the direction of the market today.

The first upside target is Friday’s high at 2094.50. This is followed closely by a downtrending angle at 2096.25. The next target above this is a downtrending angle at 2103.25. This is the last potential resistance angle before the 2110.25 main top.

The first downside target is a downtrending angle at 2082.25. However, the next uptrending angle at 2078.50 is most important. There could be a technical bounce on the first test of this angle, but it is also a trigger point for the start of a steep break.

If 1998.50 to 2094.50 becomes a new range and sellers take out 2078.50 with conviction then its retracement zone at 2046.50 to 2035.00 becomes the primary downside target.

Watch the price action and read the order flow at 2096.25 and 2078.50 today. A sustained move over 2096.25 will give the index a bullish bias. A sustained move under 2078.50 will give the market a strong downside bias.