E-mini S&P 500 Index (ES) Futures Technical Analysis – October 3, 2017 Forecast

December E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The market continued the rally during the pre-market session but with limited success. The range is tight and the volume is below average.

The prolonged move up in terms of price and time indicate to me that when this rally ends it is likely to finish with a dramatic higher-high, lower-close (Closing Price Reversal Top) so don’t try to pick a top, just let it happen.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend will turn down when 2485.00 is taken out.

Daily Forecast

The trend is up and momentum is also trending higher. This usually means it is going to take an event to turn the market lower. If one does occur, it is likely to be related to North Korea, problems with the tax reform plan or the firing of Fed Chair Janet Yellen and issues with her replacement.

Investors want clarity to they can buy with conviction. Basically anything that confuses them will give them an excuse to pair positions and move money into safe haven assets.

The first downside target is a long-term uptrending angle at 2515.25. This angle has been guiding the market higher since August 29.

If 2515.25 fails as support then look for a break into the short-term uptrending angle at 2509.00. The daily chart opens up to the downside under this angle with 2497.00 the next likely target. This is the last potential support angle before the 2485.00 main bottom.