E-mini S&P 500 Index (ES) Futures Technical Analysis – November 9, 2018 Forecast

December E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Investors are reacting to the Fed’s decision to leave interest rates unchanged while maintaining its hawkish outlook for interest rates. Additionally, some of the euphoria from the outcome of the U.S. mid-term elections may be wearing off.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. However, yesterday’s minor closing price reversal top may be an early sign that momentum is getting ready to shift to the downside.

A trade through 2824.25 will change the main trend to up. The next major target then comes in at 2947.00.

The minor closing price reversal top was confirmed earlier today. If this creates enough downside momentum then we could see a retracement of the short-term rally.

The minor trend is up. This is helping to generate the upside momentum. A new minor top has been formed at 2818.00. A trade through this level will reaffirm the minor uptrend. A trade through 2699.50 will change the minor trend to down.

Layers of retracement levels are potential support targets. This means that any selling is likely to be labored. The way of least resistance will be up if buyers can overtake 2824.25.

Daily Swing Chart Technical Forecast

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

A sustained move over 2815.50 will indicate the presence of buyers. This could lead to a quick move into 2818.00 then 2824.25. The latter is a potential trigger point for an acceleration to the upside with 2947.00 the next major upside target.

A sustained move under 2815.50 will signal the presence of sellers. If this move creates enough downside momentum then look for a test of the 50% level at 2775.00. This level is also the trigger point for another acceleration into 2748.50.