E-mini S&P 500 Index (ES) Futures Technical Analysis – October 2, 2018 Forecast

December E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. Traders are offering no explanations for the early weakness other than it may be related to position-squaring and profit-taking ahead of Friday’s U.S. Non-Farm Payrolls report.

At 1038 GMT, the December E-mini S&P 500 Index futures contract is trading 2921.25, down 8.75 or -0.29%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been drifting sideways to lower since the formation of the closing price reversal top at 2947.00 on September 21.

A trade through 2947.00 will signal a resumption of the uptrend. A trade through 2883.50 will change the main trend to down.

The minor trend is up. It turned up on Monday when buyers took out 2936.00 after a three-day setback. A trade through 2907.50 will reaffirm the minor downtrend. A new minor top has formed at 2942.00.

The short-term range is 2947.00 to 2907.50. Its 50% level or pivot comes in at 2927.25. This price is acting like resistance today.

The intermediate range is 2883.50 to 2947.00. Its retracement zone at 2915.25 to 2907.75 is support. This zone stopped the selling three times last week.

The main range is 2869.50 to 2947.00. Its retracement zone at 2908.25 to 2899.00 is the main support. Since the main trend is up, buyers could step in on a test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 2923.50.

A sustained move under 2923.50 will indicate the presence of sellers. If this creates enough downside momentum then look for a break into 2915.25. If this price fails as support then look for the weakness to extend into a support cluster at 2908.25 to 2907.75. Watch for a technical bounce on the first test of this area. Additional support is an uptrending Gann angle at 2903.50.

The selling should increase if 2903.50 fails as support with 2899.00 the next target.

A sustained move over 2923.50 will signal the presence of buyers. This could lead to a quick test of 2927.25. The buying could pick up on a move over this 50% level. This could trigger a surge to the upside with the next target angle coming in at 2937.50. Overtaking this angle will put the index in a bullish position.