E-mini S&P 500 Index (ES) Futures Technical Analysis – October 27, 2017 Forecast

December E-mini S&P 500 Index futures are trading higher during the pre-market session. The market is responding to stronger earnings from Amazon.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2577.25 will negate a closing price reversal top and signal a resumption of the uptrend.

The minor trend turned down earlier in the week but there was no follow-through selling so we’ll have to chalk about the move to sloppy price action probably fueled by panic selling. A trade through 2541.50 will signal a resumption of the minor downtrend.

The short-term range is 2577.25 to 2541.50. Its 50% level or pivot at 2559.25 is controlling the short-term direction of the market. Holding above this level will also mean that momentum has shifted to the upside.

Daily Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the pivot at 2559.25. Holding above this level will give the index a bullish tone.

If the move creates enough upside momentum we could see a drive into the reversal top at 2577.25. This is followed by uptrending angles at 2581.25 and 2587.50. Crossing to the strong side of the angle at 2587.50 will put the index in an extremely bullish position.

A sustained move under 2559.25 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with the next two targets 2541.50 and 2533.00.

Last week’s close was 2574.00 so the market is currently trading lower for the week. This puts it in a position to form a potentially bearish weekly closing price reversal top. This could lead to the start of a 2 to 3 week correction.

Watch the price action and read the order flow at 2574.00 especially late in the session. This level is very important today because it could set the tone of the market for the next 2 to 3 weeks.