E-mini S&P 500 Index (ES) Futures Technical Analysis – October 4, 2017 Forecast

December E-mini S&P 500 Index futures are called lower shortly before the cash market open. It looks like traders are adjusting positions ahead of today’s economic data and a speech by Fed Chair Janet Yellen. Traders should also watch the price action in gold and the Japanese Yen. Stocks could weaken if these two market continue to rise.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2533.50 will signal a resumption of the uptrend. Today is also the seventh day up from the last swing bottom so the index is in the window of time for a potentially bearish closing price reversal top.

The new short-term range is 2485.00 to 2533.50. If there is a correction then its retracement zone at 2509.25 to 2503.50 will become the primary downside target.

Daily Forecast

If buyers fail to sustain a rally over 2533.50 then we could see the start of a sell-off. The first downside target is a long-term uptrending angle at 2519.25. We could see a technical bounce on the first test of this angle.

If 2519.25 fails as support then look for a further break into the short-term uptrending angle at 2513.00. This is followed by the short-term retracement zone at 2509.25 to 2503.50.

I think we’re either going to rally through 2533.50 today or form a closing price reversal top.