E-mini S&P 500 Index (ES) Futures Technical Analysis – November 6, 2018 Forecast

December E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. Volume and volatility are expected to be low on Tuesday as investors await the results from the U.S. mid-term elections. Traders aren’t sure about the results or the direction of the market but they do anticipate heightened volatility.

Daily Swing Chart Technical Analysis

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

The minor trend is up. This is why momentum is trending higher.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to a series of retracement levels. Based on the early trade, the key level to watch is a Fibonacci level at 2739.75.

A sustained move over 2739.75 will indicate the presence of buyers. Overtaking the 50% level at 2748.50 will indicate the buying is getting stronger. This could trigger an acceleration into 2766.25 then 2775.00.

A sustained move under 2739.75 will signal the presence of sellers. This is a potential trigger point for an acceleration into the 50% level at 2713.50, followed by a Fib level at 2701.50. Both levels have provided support three out of the last four sessions.

Essentially, we’re looking for a rangebound trade today. Due to the low volume and investor uncertainty, be careful buying strength and selling weakness. You don’t want to get caught in a bull or bear trap.