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E-mini S&P 500 Index (ES) Futures Technical Analysis – October 1, 2018 Forecast

By:
James Hyerczyk
Published: Oct 1, 2018, 13:38 UTC

Based on the early price action, the direction of the December E-mini S&P 500 Index futures contract is likely to be determined by trader reaction to the uptrending Gann angle at 2933.50.

E-mini S&P 500 Index

December E-mini S&P 500 Index futures are expected to open sharply higher on Monday after the U.S. and Canada announced a deal to replace NAFTA. Traders are also optimistic that this could lead to a sooner-than-expected end to the trade dispute between the U.S. and China.

E-mini S&P 500 Index
Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending sideways to lower since the formation of the closing price reversal top at 2947.00 on September 21. A trade through 2947.00 will signal a resumption of the uptrend. The main trend changes to down on a move through 2883.50.

The minor trend is up. It turned up earlier today when buyers took out 2936.00. This indicates a shift in momentum to the upside. If buyers can build on this move then we could see a drive into at least 2947.00.

The short-term range is 2947.00 to 2907.50. Its 50% level or pivot is 2927.25.

The intermediate range is 2883.50 to 2947.00. Its 50% level or pivot is support at 2915.25 to 2907.75.

The main range is 2869.50 to 2947.00. Its retracement zone at 2908.25 to 2899.00 is the main support.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index futures contract is likely to be determined by trader reaction to the uptrending Gann angle at 2933.50.

A sustained move over 2933.50 will indicate the presence of buyers. If this move can create enough upside momentum then look for a possible surge over the minor top at 2936.00. Momentum is likely to build over the minor top with 2947.00 the next major upside target.

Taking out 2947.00 will negate a closing price reversal top. This may be enough to fuel an acceleration to the upside since there is no true resistance.

A sustained move under 2933.50 will signal the return of sellers. However, losses may be limited by a series of potential support levels at 2927.25, 2919.50 and 2915.25.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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