E-mini S&P 500 Index (ES) Futures Technical Analysis – November 7, 2017 Forecast

December E-mini S&P 500 Index futures are called flat based on the pre-market trade. Earlier in the session, the index rallied to a new contract high at 2593.50, but has since backed down to unchanged-to-lower.

Daily Technical Analysis

The main trend is up according to the daily swing. Today’s higher-high signaled a continuation of the uptrend.

However, the sell-off from the high at 2593.50 has put the index in a position to form a potentially bearish closing price reversal top. This chart pattern could stop the rally and trigger the start of a 2 to 3 day correction.

The short-term range is 2563.50 to 2593.50. If the selling pressure continues then its retracement zone at 2578.50 to 2575.00 will become the primary downside target. Since the main trend is up, a test of this zone could attract buyers.

The main range is 2541.50 to 2593.50. If 2575.00 fails as support then look for the selling to possibly extend down to its retracement zone at 2567.50 to 2562.25.

Daily Technical Forecast

The key level to watch is yesterday’s close at 2588.75. The index is either going to hold this level and possibly extend the rally, or it is going to close below this level and form a potentially bearish closing price reversal top.