E-mini S&P 500 Index (ES) Futures Technical Analysis – October 6, 2017 Forecast

December E-mini S&P 500 Index futures are edging lower shortly before the cash market opening and after the release of a mixed U.S. Non-Farm Payrolls report.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2550.75 will signal a resumption of the uptrend. The market is also in a position to post a potentially bearish closing price reversal top.

The new short-term range is 2485.00 to 2550.75. If this range holds and there is a sell-off then its retracement zone at 2517.75 to 2510.00 will become the primary downside target.

Daily Forecast

Based on the current price at 2547.50 and the earlier price action, the direction of the market today will be determined by trader reaction to yesterday’s high at 2550.75. Buyers are going to take out this price and spike to the upside or sellers will stop the index from making a new high. Or, buyers will take out the high and sellers will drive it lower for the session.

Taking out 2550.75 will indicate the presence of buyers. If the move extends to the upside then the first target is the steep uptrending angle at 2557.00. Overtaking this angle and sustaining the move will put the index in an extremely strong position.

If sellers take control and the pressure increases then the next major downside target becomes the long-term uptrending angle at 2527.25. We could see a technical bounce on the first test of this angle.

If 2527.25 fails as support then look for a break into the short-term uptrending angle at 2521.00.

Today, we’re looking for either a breakout to the upside, or a closing price reversal top.