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E-mini S&P 500 Index (ES) Futures Technical Analysis – November 5, 2018 Forecast

By:
James Hyerczyk
Published: Nov 5, 2018, 15:16 UTC

Based on the early trade, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 2713.50.

E-mini S&P 500 Index

December E-mini S&P 500 Index futures are trading slightly better shortly after the cash market opening. Volume and volatility are relatively low with most of the major players on the sidelines ahead of Tuesday’s U.S. mid-term elections. The uncertainty over the results is carrying too much risk for investors to decisively choose a direction at this time.

At 1338 GMT, December E-mini S&P 500 Index futures are trading 2729.50, up 5.25 or +0.19%.

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

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 2824.25 will change the main trend to up. A move through 2603.00 will signal a resumption of the downtrend.

The minor trend is up. It turned up last week when buyers took out 2707.00. This shifted momentum to the upside. The new minor top is 2766.25. A trade through this level will indicate the buying is getting stronger.

The main range is 2947.00 to 2603.00. Its retracement zone at 2775.00 to 2815.50 is resistance.

Another retracement zone comes in at 2748.50 to 2701.75. Inside this zone is 2713.50 to 2739.75. The market has been straddling these zones for four trading sessions, indicating investor indecision.

The short-term range is 2603.00 to 2766.25. Its retracement zone at 2684.50 to 2665.25 is the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 2713.50.

A sustained move over 2713.50 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally into 2739.75 then 2748.50.

The index will begin to strengthen over 2748.50 with the next targets 2766.25 then 2775.00.

A sustained move under 2713.50 will signal the presence of sellers. This is followed by a series of potential support levels at 2701.50, 2684.50 and 2665.25.

Basically, we’re looking for a choppy, two-sided trade inside 2713.50 to 2739.75 and 2701.50 to 2748.50.

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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