E-mini S&P 500 Index (ES) Futures Technical Analysis – October 31, 2014, Forecast

The overnight news out of Japan has put a bullish spin on the December E-mini S&P 500 Index. Simple stated, more stimulus by the Bank of Japan means more liquidity for stock market investors.

The key support today is 1984.50. Holding this number should lead to a test of the next resistance at 1999.50.

Overtaking 1999.50 may trigger a rally into the major uptrending angle that has been giving the market direction since the 1813.00 bottom on October 15. This angle is at 2005.00.

Crossing to the bullish side of 2005.00 and sustaining the rally could create enough upside momentum to challenge the all-time high at 2014.50.

The tone of the day will be determined by trader reaction to 1984.50. There could be a steep drop to 1954.50 if this level is taken out with conviction.

If it holds as support then look for an early grind into 1999.50 then possible accelerations to the upside over this price and 2005.00.

Watch for an early upside bias because of the BOJ decision.