E-mini S&P 500 Index (ES) Futures Technical Analysis – October 4, 2018 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 short-term pivot at 2927.25.
James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

December E-mini S&P 500 Index futures are trading lower shortly after the opening. Investors are being pressured by rising interest rates and hawkish commentary from U.S. Federal Reserve Chairman Jerome Powell. Investors are also squaring positions and booking profits ahead of Friday’s U.S. Non-Farm Payrolls report.

Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been drifting sideways to lower since the formation of the closing price reversal top on September 21. A trade through 2947.00 will negate the chart pattern and signal a resumption of the uptrend. The main trend will change to down on a move through 2883.50.

The minor trend is down. It turned down earlier today when sellers took out 2917.50. A trade through 2944.75 will change the minor trend to up. Today’s change in trend also shifted momentum to the downside.

The short-term range is 2947.00 to 2907.50. Its 50% level or pivot comes in at 2927.25. This price is controlling the direction of the index today.

The intermediate range is 2883.50 to 2947.00. Its retracement zone is 2915.25 to 2907.75. This zone is early support.

The main range is 2869.50 to 2947.00. Its retracement zone at 2908.25 to 2899.25 is the major support zone.

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 short-term pivot at 2927.25.

A sustained move under 2927.25 will indicate the presence of sellers. The first downside target is the 50% level at 2915.25. This level provided support earlier today.

If 2915.25 fails as support then look for the selling to extend into the support cluster at 2907.75 to 2907.50. Look for a technical bounce on the first test of this area.

Taking out 2907.50 could trigger an acceleration into the Fib level at 2899.25. This is followed by an uptrending Gann angle at 2895.50. This is the last potential support angle before the 2883.50 main bottom.

Overtaking and sustaining a rally over 2927.25 will signal the return of buyers. The first target angle is 2931.50.

Crossing to the strong side of the angle at 2931.50 will indicate the buying is getting stronger. This could trigger an acceleration into an uptrending Gann angle at 2945.50.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.