E-mini S&P 500 Index (ES) Futures Technical Analysis – October 9, 2017 Forecast

December E-mini S&P 500 Index futures are called higher based on the pre-market trade. The market seems to be ignoring the North Korean threat. Volume is expected to be below average due to a U.S. bank holiday.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Today’s session also begins with the index in the window of time for a potentially bearish closing price reversal top.

A trade through 2550.75 will signal a resumption of the uptrend. I expect buyers to take out this price and continue the rally because of the strong trend and momentum, however, if it can’t sustain the rally and pulls back under 2545.00 then I’m going to start watching for a closing price reversal top.

The current short-term range is 2485.00 to 2550.75. If 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 2550.25, the direction of the index today is likely to be determined by trader reaction to last week’s high at 2550.75.

A sustained move over 2550.75 will indicate the presence of buyers. The next major upside target comes in at 2565.00. Crossing to the strong side of this angle will put the market in an extremely strong position.

A sustained move under 2550.75 will signal the presence of sellers. The next major downside targets are a pair of uptrending angles at 2531.25 and 2525.00.

Watch the price action and read the order flow at 2550.75 all session. Buyers are either going to drive through this level or form a closing price reversal top.