E-mini S&P 500 Index (ES) Futures Technical Analysis – October 17, 2014, Forecast

December E-mini S&P 500 Index futures posted an inside day on Thursday, indicating impending volatility. The higher close gives the index a slight bias to the upside.

The key area to watch is 1854.50 to 1855.50. A downtrending angle from 2014.50 comes in at 1854.50 and an uptrending angle from the 1790.00 moves up to 1855.50. Trader reaction to this area should set the tone for the day.

If resistance forms at 1854.50 to 1855.50 then watch for a potential pullback to the nearest uptrending angle at 1822.50. Under this angle is 1822.50 and the main bottom at 1790.00.

The daily chart indicates that there is plenty of room to the upside. The short-term range is 1968.50 to 1813.00. Its retracement zone at 1890.75 to 1909.00 is the best upside target. A major 50% level passes through this zone at 1902.50.

Watch the order flow and price action 1854.50 to 1855.50. A bullish tone will develop if this area is overcome then becomes support.