E-mini S&P 500 Index (ES) Futures Technical Analysis – October 10, 2014, Forecast

On Thursday, the December E-mini S&P 500 Index futures contract reversed back to the downside slightly above the major 50% level at 1966.25 and just short of the last main top at 1971.00. A trade through this level would have turned the main trend to up on the daily chart. The subsequent massive sell-off took out the previous swing bottom at 1918.00, reaffirming the downtrend.

The close under the uptrending angle at 1926.75 is also a sign of weakness. This may create enough downside momentum today to trigger a further break into the next angle at 1904.75. This is the last potential support angle before the August 8 main bottom at 1882.75.

Overcoming the angle at 1926.75 will be the first sign of short-covering today. The next is overtaking the major Fibonacci level at 1932.75. The daily chart opens up over this level with the 50% level at 1948.25 the next likely upside target. This is followed by a major downtrending angle at 1954.50.

If the index can recover today in a big way then the retracement zone created by the break from 2014.50 to 1915.25 will become the next major target at 1965.00 to 1976.75.

The tone of the session is likely to be determined by trader reaction to the angle at 1926.75. This price is likely to act as a pivot until the bulls or bears decide which way they want this market to close.