E-mini S&P 500 Index (ES) Futures Technical Analysis – November 6, 2017 Forecast

December E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The index is trading inside Friday’s range which indicates investor indecision and impending volatility.

There are no major economic reports today so the price action is likely to be driven by earnings reports.

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. Despite the uptrend, the market is still in the window of time for a potentially bearish closing price reversal top.

The short-term range is 2585.50 to 2563.50. Its retracement zone at 2577.00 to 2574.50 is new support. Falling to the weak side of this zone will shift momentum to the downside.

The main range is 2541.50 to 2585.50. If there is a hard sell-off then its retracement zone at 2562.75 to 2557.75 will become the primary downside target.

Daily Technical Forecast

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

A sustained move over 2577.00 will indicate buyers are coming in to defend the uptrend. If this creates enough upside momentum, we could see a breakout over 2585.50.

If 2577.00 fails as support then look for a quick break into the 50% level at 2574.50. This level is a potential trigger point for an acceleration to the downside with the next targets 2562.75, 2563.50 and 2557.75.