E-mini S&P 500 Index (ES) Futures Technical Analysis – October 16, 2017 Forecast

December E-mini S&P 500 Index futures are expected to open flat-to-higher based on the pre-market trade. Earnings are expected to continue to dominate the trade.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, today’s session begins with the market in the window of time for a potentially bearish closing price reversal top.

We’ve already had a higher-high on the daily chart so all we need is a close below 2552.75 to set up the chart pattern.

The short-term range is 2485.00 to 2556.50. If there is a sell-off then its retracement zone at 2520.75 to 2512.25 will become the primary downside target.

Daily Forecast

Based on the earlier trade, the direction of the index today is likely to be determined by trader reaction to the long-term uptrending angle at 2551.25.

A sustained move over 2551.25 will signal the presence of buyers. This could lead to a retest of the intraday high at 2556.50 and a possible breakout to the upside.

A sustained move under 2551.25 will indicate the presence of sellers. This could trigger a fast break into the short-term uptrending angle at 2545.00.

The daily chart indicates there is plenty of room to the downside if 2545.00 fails as support and selling volume increases. If sellers can sustain the break then look for a possible move into the short-term retracement level at 2520.75.

Look for the bullish tone to continue on a sustained move over 2551.25 and for a bearish tone to develop on a sustained move under 2545.00.