E-mini S&P 500 Index (ES) Futures Technical Analysis – November 3, 2017 Forecast

December E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. Traders are showing almost no reaction to today’s U.S. Non-Farm Payrolls report. The report showed the economy added 261,000 jobs in October, falling short of expectations. The unemployment rate fell to 4.1% and Average Hourly Earnings were flat.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2585.50 will signal a resumption of the uptrend.

Today’s early strength has helped make 2563.50 a new minor bottom. A trade through this level will change the main trend to down. This will be the first sign that the selling is greater than the buying at current price levels. The next major target is the minor bottom at 2541.50.

The short-term range is 2585.50 to 2563.50. Its retracement zone at 2574.50 to 2577.00 is controlling the direction of the market today. It is providing early support today.

The main range is 2541.50 to 2585.50. If 2574.50 fails as support then we could correct into the next retracement zone at 2562.75 to 2557.75.

Daily Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to the short-term Fibonacci level at 2577.00.

A sustained move over 2577.00 will signal the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the top at 2585.50.

A sustained move under 2577.00 will indicate the presence of sellers. The first target is the 50% level at 2574.50. This price is a possible trigger point for an acceleration to the downside with the first two targets 2563.50 and 2562.75.

Last week’s close was 2578.50. A close under this level will form a weekly closing price reversal top. This will be a strong sign of selling pressure. It could also lead to the start of a 2 to 3 week correction.