E-mini S&P 500 Index (ES) Futures Technical Analysis – October 3, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The buying is being driven by today’s ADP jobs report which shows the private sector added 230,000 jobs in September. Traders were looking for a gain of 185,000 jobs during the month. This confirms the Fed’s bullish outlook for the economy.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on September 21.

A trade through 2947.00 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend is safe for now. It turns to down on a trade through 2883.50.

The minor trend is also up. A move through 2942.00 reaffirms the uptrend. A trade through 2917.50 will change the minor trend to down.

The short-term range is 2947.00 to 2907.50. Its 50% level or pivot at 2927.25 is controlling the price action today. It is currently support.

The intermediate range is 2883.50 to 2947.00. Its retracement zone at 2915.25 to 2907.75 is new support.

The main range is 2869.50 to 2947.00. Its retracement zone at 2908.25 to 2899.00 is the major support.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index today is likely to be determined by trader reaction to the support cluster at 2927.50 to 2927.25.

A sustained move over the uptrending Gann angle at 2927.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into the next uptrending Gann angle at 2941.50.

Overtaking 2941.50 will indicate the buying is getting stronger. This could trigger a breakout over the minor top at 2942.00. This would put the market in a position to challenge the all-time high at 2947.00. This is another trigger point for an upside breakout.

A sustained move under 2927.25 will signal the presence of sellers. This could trigger an acceleration to the downside with the next targets coming in at 2917.50 and 2915.25. This is followed by another support cluster at 2908.25 to 2907.75.

The major support is still another support cluster at 2905.50.