E-mini S&P 500 Index (ES) Futures Technical Analysis – October 25, 2017 Forecast

December E-mini S&P 500 Index futures are expected to open the cash market lower based on the pre-market trade. An extremely busy earnings week may be forcing investors to the sidelines to give them to time to take a breather and digest the numbers.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may be shifting to the downside in reaction to Monday’s closing price reversal top.

A trade through 2577.25 will negate the chart pattern and signal a resumption of the uptrend.

A move through 2542.50 will change the minor trend to down.

The short-term range is 2542.50 to 2577.25. Its retracement zone at 2559.75 to 2555.75 is the first downside target. Since the main trend is up, buyers may step in on a test of this zone in an effort to form a potentially bullish secondary higher bottom.

The main retracement zone is 2531.00 to 2520.25.

Daily Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to the short-term 50% level at 2559.75.

A sustained move over 2559.75 will indicate the presence of buyers. If this triggers enough upside momentum, we could see a move into the first uptrending angle at 2573.00.

Overtaking 2573.00 will indicate the buying is getting stronger. This could trigger a further rally through the top at 2577.25, followed by another uptrending angle at 2579.25. Overtaking this angle will put the index in a bullish position.

A sustained move under 2559.75 will signal the presence of sellers. This could trigger a fast break into the Fibonacci level at 2555.75. This price is the trigger point for an even steep sell-off into 2542.50.