E-mini S&P 500 Index (ES) Futures Technical Analysis – October 16, 2014, Forecast

December E-mini S&P 500 Index futures continued its sell-off on Wednesday, making it as low as 1813.00 before rebounding slightly into the close.

The selling pressure took out the last angle before the April 14 main bottom at 1790.00 but recovered it into the close. This angle comes in at 1822.25 today.

Holding this angle could trigger a rally into the next uptrending angle at 1854.50. Overcoming this angle will be another sign of strength, but don’t expect and acceleration to the upside unless the downtrending angle at 1862.50 is taken out with conviction.

Based on the short-term range of 1968.50 to 1813.00, the first target is a minor 50% level at 1890.75. This is followed by a major 50% level at 1902.25 and a minor Fibonacci level at 1909.00.

If buyers fail to show up to support the market then look for sellers to pressure the market through the angle at 1822.25 then yesterday’s low at 1813.00. If this price fails then watch for a drive into 1790.00.

The tone of the market today will be determined by trader reaction to the downtrending angle at 1862.50.