E-mini S&P 500 Index (ES) Futures Technical Analysis – November 8, 2017 Forecast

December E-mini S&P 500 Index futures are expected to open the regular session lower based on the pre-market trade.

On Tuesday, the index formed a potentially bearish closing price reversal top. It was confirmed earlier in the session without much follow-through to the downside.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of the closing price reversal top.

A trade through 2593.50 will negate the chart pattern and signal a resumption of the uptrend. A trade through the intraday low at 2579.75 will indicate the selling is getting stronger.

The short-term range is 2593.50 to 2579.75. Its 50% level or pivot at 2586.75 is controlling the price action early in the session.

The intermediate range is 2563.50 to 2593.50. Its retracement zone at 2578.50 to 2575.00 is providing support.

The main range is 2541.50 to 2593.50. If the selling pressure is strong enough to take out 2575.00 then look for a potential break into its retracement zone at 2567.50 to 2561.25.

Daily Technical Forecast

Based on the early trade, the direction of the index the rest of the session is likely to be determined by trader reaction to the 50% level at 2586.75 and the 50% level at 2578.50.

Overtaking and sustaining the rally over 2586.75 will signal the return of buyers. If this creates enough upside momentum then look for traders to make a run at 2593.50.

The inability to overcome 2586.75 will indicate the presence of sellers. Taking out 2578.50 will indicate the selling is getting stronger. A failure to hold 2575.00 could trigger an acceleration into 2567.50 to 2561.25.

Basically, look for an upside bias to develop on a sustained move over 2586.75 and for a downside bias on a sustained move under 2578.50.