E-mini S&P 500 Index (ES) Futures Technical Analysis – October 18, 2017 Forecast

December E-mini S&P 500 Index futures hit another record high earlier in the session with the rally showing no signs of letting up. The price action indicates growing optimism over earnings season.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but the index remains inside the window of time for a potentially bearish closing price reversal top.

We’ve had a higher-high so the index could begin to weaken later in the session if it starts to break below yesterday’s close at 2557.00. A close below this level will produce the closing price reversal top.

The new short-term range is 2485.00 to 2561.25. If there is a correction from current levels then its retracement zone at 2523.00 to 2514.00 will become the primary downside target.

Daily Forecast

Based on the current price action, the direction of the index today is likely to be determined by trader reaction to the long-term uptrending angle at 2559.25.

A sustained move over 2559.25 will indicate the presence of buyers. This could generate the upside momentum needed to drive the market higher.

A failure to hold 2559.25 will signal the presence of sellers. This could lead to a test of the short-term uptrending angle at 2553.00. We could see a technical bounce on the first test of this level.

However, we could see the start of the first meaningful sell-off in weeks if 2553.00 fails as support with the primary downside target being the short-term 50% level at $2523.00.

Look for a bullish tone today on a sustained move over 2559.25 and a bearish tone on a sustained move under 2553.00.