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E-mini S&P 500 Index (ES) Futures Technical Analysis – November 24, 2015 Forecast

By:
James Hyerczyk
Published: Nov 24, 2015, 09:52 UTC

December E-mini S&P 500 Index futures sold off sharply early in the pre-market session after it broke to the weak side of the steep uptrending angle

Daily December E-mini S&P 500 Index

December E-mini S&P 500 Index futures sold off sharply early in the pre-market session after it broke to the weak side of the steep uptrending angle that had guided it higher since November 16. This angle, moving up at a rate of 16 points per day from the 1998.50 bottom, comes in at 2094.50 today. Buyers will have to overcome this angle to maintain the upside momentum of the recent five day rally.

Daily December E-mini S&P 500 Index
Daily December E-mini S&P 500 Index

Based on Monday’s close at 2084.25, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 2080.25.

A sustained move over this angle will indicate the presence of buyers. However, it will still have to regain 2094.50 to put it in a bullish position. The next target over this is a downtrending angle at 2102.75. This is the last potential resistance before the 2110.25 main top.

A sustained move under 2080.25 will signal the presence of sellers. The daily chart is open to the downside with a pair of angles at 2050.25 and 2046.50 the first downside targets.

The new main range is 1998.50 to 2094.50. If the selling is strong enough to generate further selling pressure over the near-term 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 2080.25 today. Trader reaction to this angle will tell us whether the bulls or the bears are in control. The chart pattern also indicates that the way of least resistance is to the downside. Any rallies are likely to be labored because of the series of resistance levels. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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