E-mini S&P 500 Index (ES) Futures Technical Analysis – October 20, 2017 Forecast

December E-mini S&P 500 Index futures are called higher based on the pre-market trade. During the early session, the index posted a new all-time high.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out 2562.25.

The new minor bottom is 2542.50. This is a possible trigger point for an acceleration to the downside.

The new short-term range is 2542.50 to 2571.75. Its retracement zone at 2557.00 to 2553.50 is a new support zone.

The main range is 2485.00 to 2571.75. If there is a major break from the current high then its retracement zone at 2528.25 to 2518.00 will become the primary downside target.

Daily Forecast

Based on the current price at 2565.75 and the earlier price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the long-term uptrending angle at 2567.50.

A sustained move over 2567.50 will indicate the presence of buyers. This could trigger a rally into today’s intraday high at 2571.75 and beyond.

A sustained move under 2567.50 will signal the presence of sellers. This could drive the index into a short-term uptrending angle at 2561.00.

If 2561.00 fails as support then look for the selling to extend into 2557.00 to 2553.50. The index could accelerate to the downside if this zone fails with 2542.50 the next likely downside target.

Because of the current volatility, investors should also watch the price action and read the order flow at 2560.50. A close below this level will produce a daily closing price reversal top.

A close below 2552.75 will produce a weekly closing price reversal top.

Essentially, look for a bullish tone to emerge on a sustained move over 2567.50 and for a bearish tone on a sustained move under 2561.00.