E-mini S&P 500 Index (ES) Futures Technical Analysis – October 23, 2017 Forecast

December E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The market is getting support from a weaker Japanese Yen and increased demand for risky assets. Investors are also anticipating another round of better-than-estimated earnings reports.

Daily Technical Analysis

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

A break back under Friday’s close under 2574.00 will be the first sign of weakness. A move under the previous top at 2562.25 will indicate the selling is getting stronger. Taking out 2542.50 will change the main trend to down.

Daily Forecast

Based on the current price at 2575.50 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the long-term uptrending angle at 2571.25.

A sustained move over 2571.25 will signal the presence of buyers. There is no resistance so we could see an acceleration to the upside.

A sustained move under 2571.25 will indicate the presence of sellers. This could create enough downside momentum to challenge the short-term uptrending angle at 2565.00. Since the main trend is up, we could see a technical bounce on the first test of this angle.

Look out to the downside if 2565.00 fails as support. This could hit trailing stops and trigger an acceleration into the minor bottom at 2542.50.