E-mini S&P 500 Index (ES) Futures Technical Analysis – October 30, 2018 Forecast

December E-mini S&P 500 Index futures are trading higher on Tuesday. The early session strength is being fueled by a strong recovery in China’s major indexes overnight. End of the month position-squaring is also helping to underpin prices. Despite the early strength, investors are being cautious due to heightened volatility.

At 1445 GMT, December E-mini S&P 500 Index futures are trading 2666.00, up 22.50 or +0.85%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2603.00 will signal a resumption of the downtrend. This is followed by the May 3 bottom at 2602.75 and the April 2 bottom at 2562.50.

The market isn’t in a position to change the main trend to up, but it is in the window of time for a closing price reversal bottom.

The minor trend is also down. A trade over 2707.00 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is 2824.25 to 2603.00. Its 50% level at 2713.75 is resistance and a potential breakout level.

The major retracement zone at 2701.75 to 2748.50 is major resistance.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 2636.50. This angle provided support last Friday and earlier today.

A sustained move over 2636.50 will indicate the presence of buyers. If it creates enough upside momentum then look for a test of the steep downtrending Gann angle at 2680.25. This angle has been guiding the index lower for 9 sessions.

Look for sellers on the first test of 2680.25, but if it fails then look for an acceleration to the upside with targets coming in at 2701.75, 2710.50 and 2713.75.

Basically, look for an upside bias to develop over 2680.25 and for a downside bias to develop under 2636.50.