E-mini S&P 500 Index (ES) Futures Technical Analysis – October 29, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The price action suggests upside momentum is building, but the rally is likely to be labored due to a series of potential resistance levels. This could help slow down the momentum since the main trend is down.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2824.25 will change the main trend to up.

A trade through 2627.25 will signal the resumption of the downtrend. The next two targets under this level are the May 3 bottom at 2602.75 and the April 2 bottom at 2562.50.

The minor trend is also down. A new main bottom has formed at 2627.25.

The major retracement zone at 2701.75 to 2748.50 is new resistance. This zone is controlling the near-term direction of the index.

The short-term range is 2824.25 to 2627.25. Its 50% level or pivot at 2725.75 falls inside the major retracement zone. This level is also resistance. Since the main trend is down, sellers are likely to come in on the first test of this pivot.

Daily Technical Forecast

Based on the early trade, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the downtrending Gann angle at 2696.25.

Bullish Scenario

A sustained move over 2696.25 will signal the presence of buyers. This could lead to a quick test of 2701.75 and an uptrending Gann angle at 2709.50.

Overtaking 2709.50 could trigger an acceleration to the upside with the first target 2725.75. This is also a trigger point for an acceleration into 2748.50 then a downtrending Gann angle at 2760.25.

Bearish Scenario

A sustained move under 2696.25 will indicate the presence of sellers. If this move creates enough downside momentum then we could see a break into an uptrending Gann angle at 2636.00. This angle was tested on Friday.

If 2636.00 fails as support then look for a move into 2627.25. Taking out this level could lead to a test of a support cluster at 2602.75 to 2599.25. If this area fails then look for the selling to possibly extend into 2562.50.