E-mini S&P 500 Index (ES) Futures Technical Analysis – October 14, 2014, Forecast

December E-mini S&P 500 Index futures closed sharply lower on Monday. The index also closed on the weak side of a major retracement zone. The downside momentum created by both of these moves gives the index a downside bias on the opening.

The first downside target is a long-term uptrending angle from the 1790.00 bottom at 1853.50. The daily chart indicates there is plenty of room to the downside if this angle fails with the next potential target 1821.75. This is the last major angle before the April 14 bottom at 1790.00.

Overtaking the major Fibonacci level at 1876.00 will be the first sign of profit-taking, or short-covering. Short sellers should make sure they have protective stops in place because the next upside target is the major 50% price at 1902.50.

Although 1821.75 is a potential target if 1853.50 fails as support, traders should note that previous bottoms at 1846.00, 1840.00 and 1831.50 could get in the way of a fast break down.

Look for a bearish tone today as long as the index stays under 1876.00.