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E-mini S&P 500 Index (ES) Futures Technical Analysis – October 8, 2018 Forecast

By:
James Hyerczyk
Published: Oct 8, 2018, 13:50 UTC

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 an uptrending Gann angle at 2881.00.

E-mini S&P 500 Index

December E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. The weakness is being fueled by concerns over rapidly rising Treasury yields and a decline in overseas stocks, particularly China, which is under pressure after a week-long holiday.

U.S. banks and the U.S. Treasury are closed today due to the Columbus Day holiday. This likely means volume is going to be below average. With this in mind, be careful selling weakness or buying strength and watch out for whip-saw trading conditions.

E-mini S&P 500 Index
Daily December E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The next downside target is a main bottom at 2869.50. The daily chart opens up to the downside under this bottom with the next target 2807.00.

The main trend will change to up on a trade through 2947.00. The index is in no position to change the trend, but it is in the window of time for a closing price reversal bottom.

The main range is 2807.00 to 2947.00. Its retracement zone at 2877.00 to 2860.50 is currently being tested. This zone is controlling the near-term direction of the index.

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 an uptrending Gann angle at 2881.00.

Holding above 2881.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to continue into a downtrending Gann angle at 2903.00. Since the main trend is down, sellers could come in on the first test of this angle.

A sustained move under 2881.00 will signal the presence of sellers. This is followed by the 50% level at 2877.00.

The daily chart starts to open up to the downside under 2877.00 with a price cluster at 2860.50 to 2859.00 the next key downside target.

Crossing to the weak side of the downtrending Gann angle at 2859.00 will put the index in an extremely bearish position.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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