E-mini S&P 500 Index (ES) Futures Technical Analysis – October 5, 2018 Forecast

E-mini S&P 500 Index futures are trading flat shortly before the release of the U.S. Non-Farm Payrolls report and the cash market opening. The market is also trading inside yesterday’s wide range, suggesting investor indecision and impending volatility. The index sold off sharply on Thursday, but recovered most of its intraday loss into the close.

At 1153 GMT, December E-mini S&P 50 Index futures are trading 2908.75, up 1.00 or +0.03%.

Daily Technical Analysis

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

The minor trend is down. It changed to down on Thursday on the trade through 2917.50. This also shifted momentum to the downside.

The main range is 2869.50 to 2947.00. The market is currently straddling its retracement zone at 2908.25 to 2899.25. This zone is controlling the near-term direction of the index.

The minor range is 2883.50 to 2947.00. Its retracement zone at 2915.25 to 2907.75 is acting like resistance.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to the uptrending Gann angle at 2909.50.

A sustained move over 2909.50 will indicate the presence of buyers. This could trigger an acceleration to the upside with 2915.25 the first target. This is a potential trigger point for an acceleration to the upside.

The daily chart indicates there is plenty of room to the upside over 2915.25 with 2935.50 the next upside target. Overtaking this angle will put the market in a bullish position with the next targets coming in at 2947.00 and 2949.50.

A sustained move under 2909.50 will signal the presence of sellers. The first target is a Fib level at 2907.75, followed by a 50% level at 2908.25.

If 2908.25 fails then look for a possible plunge into another Fib level at 2899.25, followed by an uptrending Gann angle at 2896.50.

If 2896.50 fails then look for the selling to extend into 2889.50, 2887.75 and 2883.50.

Taking out 2883.50 will indicate the selling is getting stronger with the next target angle coming in at 2879.50. This is the last potential support angle before the 2869.50 main bottom.