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E-mini S&P 500 Index (ES) Futures Technical Analysis – October 20, 2014, Forecast

By:
James Hyerczyk
Updated: Aug 25, 2015, 02:00 UTC

December E-mini S&P 500 Index futures rallied on Friday, taking out a couple of resistance angles and making 1813.00 a new minor bottom. The majority

Daily December E-mini S&P 500 Index

December E-mini S&P 500 Index futures rallied on Friday, taking out a couple of resistance angles and making 1813.00 a new minor bottom. The majority of the buying was short-covering. Investors aren’t going to chase this market higher without a solid support base so the index is likely to run into selling pressure at a series of retracement levels hovering above Friday’s close at 1881.00.

Daily December E-mini S&P 500 Index
Daily December E-mini S&P 500 Index

The short-term range is 1968.50 to 1813.00. Its retracement zone is 1890.75 to 1909.00. These levels are one objective.

The major range is 1790.00 to 2014.50. Its 50% level at 1913.75 falls inside the short-term retracement zone at 1902.25. This level is also possible resistance.

Another retracement zone has been formed by the 2014.50 to 1813.00 range. This zone is 1913.75 to 1937.50.

The first downtrending Gann angle target comes in at 1912.50. Given the recent volatility, this level forms a relatively tight resistance cluster with the 50% level at 1913.75, making it the best upside target today. Taking out this area with conviction could trigger a further rally into two angles which are straddling the Fibonacci level at 1937.50. These angles come in at 1930.50 and 1940.50.

If buyers cannot sustain a rally through 1890.75 then look for selling pressure to begin. Falling back below the steep downtrending angle at 1856.50 and the long-term uptrending angle at 1855.50 could trigger an acceleration to the downside. The daily chart doesn’t indicate significant support under 1855.50 until 1822.50.

Look for an early upside bias today. A rally is likely to be labored because of the series of retracement levels at 1890.75, 1902.25, 1909.00 and 1913.75. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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