E-mini S&P 500 Index (ES) Futures Technical Analysis – November 8, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Earlier today, the index ran into resistance at a key retracement level. Additionally, there wasn’t much of a follow-through to the upside after yesterday’s strong rally. It was a relief rally fueled by the outcome of the mid-term elections that came in as forecast. President Trump also helped goose the market higher when he offered the Democrats an olive branch, suggesting they work together with the Republicans on projects designed to keep the economy growing.

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.

The market is not in a position to change the trend to down. However, it is in the window of time for a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day counter-trend correction.

The main range is 2947.00 to 2603.00. The index is currently trading inside its retracement zone at 2815.50 to 2775.00. This zone is controlling the near-term direction of the market.

The major retracement zone is 2748.50 to 2701.50. This zone is support and also contributing to the upside bias. It represents 50% to 61.8% of the 2018 trading range.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to the Fibonacci level at 2815.50.

Taking out 2815.50 with conviction and sustaining the move will indicate the presence of buyers. The first target is the main top at 2824.25. A trade through this level will change the main trend to up.

The daily chart is wide open to the upside with 2947.00 the next major target so watch for an acceleration to the upside if the buying volume comes in strong over 2824.25.

A sustained move under 2815.50 will signal the presence of sellers. Turning lower for the session will also be a sign of weakness since it puts the index in a position to form a daily closing price reversal top. The first two downside targets are layered at 2775.00 and 2748.50.