E-mini S&P 500 Index (ES) Futures Technical Analysis – October 31, 2017 Forecast

December E-mini S&P 500 Index futures are called higher based on the pre-market trade, but the index is still trading inside last Friday’s range which suggests investor indecision and impending volatility.

Earnings season continues today with results expected from Mastercard, Kellogg, and Electronic Arts. Earlier in the session, Pfizer reported better-than-expected earnings. Aetna posted mixed quarterly results and Cummins beat on revenue and profit.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2580.75 will signal a resumption of the uptrend.

The short-term range is 2541.50 to 2580.75. Its retracement zone at 2561.00 to 2556.50 is the first downside target and potential support. Since the main trend is up, we’re likely to see buyers show up on a test of this zone.

If 2556.50 fails as support, we could see an acceleration to the downside with the minor bottom at 2541.50 the next target. The major support is a retracement zone at 2531.00 to 2520.00.

Daily Forecast

The market is currently trading inside Friday’s wide range which means it can move in either direction.

The higher price is giving the index a slight upside bias which makes 2580.75 the first upside target, followed by a pair of uptrending Gann angles at 2589.00 and 2595.25. Overtaking 2595.25 will put the index in an extremely bullish position.

The first target on the downside is the short-term 50% level at 2561.00. This is followed by the short-term Fibonacci level at 2556.50. We could see technical bounces on tests of these levels.

If 2556.50 fails as support then look for a possible acceleration to the downside with potential targets a minor bottom at 2541.50 and a long-term uptrending angle at 2537.00. This is the last potential support angle before the 2531.00 major 50% level.