E-mini S&P 500 Index (ES) Futures Technical Analysis – November 9, 2017 Forecast

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The catalyst behind the selling pressure is a steep drop in the retail sector due to disappointing quarterly earnings.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside after the minor trend turned down earlier in the session. Additionally, the index is also setting up for its second potentially bearish closing price reversal top in three sessions.

If there is a turnaround later today, taking out 2594.50 will signal a resumption of the uptrend.

If the selling pressure continues then the next target is the minor bottom at 2563.50. This is followed by another minor bottom at 2541.50.

The short-term range is 2563.50 to 2594.50. Its retracement zone at 2579.00 to 2575.25 is currently being tested. We could see a technical bounce on the first test of this zone. However, if 2575.25 fails to hold, the index could accelerate to the downside with another retracement zone the next target.

The main range is 2541.50 to 2594.50. Its retracement zone at 2568.00 to 2561.75 is the next target.

The index is also trading lower for the week which puts it in a position to post a weekly closing price reversal top.

Daily Technical Forecast

Based on the early price action, the direction of the index is likely to be determined by trader reaction to the 50% level at 2579.00.

Holding above 2579.00 will indicate the return of buyers. This move may generate a retracement of the first break from 2594.50.

A sustained move under 2579.00 will signal the selling is getting stronger. This could drive the index into the Fibonacci level at 2575.25. This price is a possible trigger point for an acceleration into the main 50% level at 2568.00 then the main Fibonacci level at 2561.75.

If 2561.75 fails then the next target angle comes in at 2551.00.

Today should be a high momentum day. The key area to watch is the short-term pivot zone at 2579.00 to 2575.25. This zone will control the direction of the market the rest of the session.