E-mini S&P 500 Index (ES) Futures Technical Analysis – October 6, 2014, Forecast

December E-mini S&P 500 Index futures rallied on Friday, making 1918.25 a new minor bottom. The momentum at the close was strong enough to give the index an upside bias on Monday.

The new range is 2014.50 to 1918.25. Its retracement zone at 1968.50 to 1977.75 is the next upside target. Since the main trend is down, sellers may come in to defend this area. This is a critical area because a failure here will form a potentially bearish secondary lower top. A drive through the zone will set up a test of the all-time high at 2014.50.

The first uptrending Gann angle to overcome is at 1962.75. If this move fails to materialize then look for a pullback into the next uptrending support angle at 1950.25. This is followed by angles at 1934.25 and 1926.25.

The first downtrending angle at 1970.50 passes through the retracement zone, making it a valid upside target. The daily chart opens up over 1977.75, making the next angle at 1992.50 another target.

The tone of the market today is likely to be determined by trader reaction to the 1968.50 to 1977.75 retracement zone.