E-mini S&P 500 Index (ES) Futures Technical Analysis – October 16 2018 Forecast

December E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. Traders are responding positively to the release of strong quarterly earnings results from some top companies.

At 1330 GMT, the market is trading 2772.00, up 23.00 or +0.84%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the market has been holding a key retracement area for four sessions. A trade through 2712.25 will signal a resumption of the downtrend.

The minor trend is also down. The minor trend will change to up on a move through 2900.00.

We’re not expecting any changes in trend today, but there is room for a strong counter-trend rally.

Traders are trying to establish a support base at or inside the major 50% to 61.8% retracement zone at 2748.50 to 2701.75. Last week’s low at 2712.25 stopped inside this zone.

The short-term range is 2947.00 to 2712.25. Its retracement zone at 2829.75 to 2857.25 is the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the 50% level at 2748.50.

A sustained move over 2748.50 will indicate the presence of counter-trend buyers. If this move creates enough upside momentum then look for a potential surge into a downtrending Gann angle at 2811.00. Since the main trend is down, sellers are likely to come in on a test of this angle

Overcoming the angle at 2811.00 will indicate the buying is getting stronger with 2829.75 the next upside target.

A sustained move under 2748.50 will signal the return of sellers. If sellers come in hard then look for a potential break into last week’s low at 2712.25 and the Fibonacci level at 2701.75.