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E-mini S&P 500 Index (ES) Futures Technical Analysis – October 9, 2018 Forecast

By:
James Hyerczyk
Published: Oct 9, 2018, 13:17 UTC

Based on the early price action, the direction of the December E-mini S&P 500 Index today is likely to be determined by trader reaction to the 50% level at 2877.00.

E-mini S&P 500 Index

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Investors are being rattled this morning because of another surge in U.S. Treasury yields.

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

 Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2947.00 will change the main trend to up.

The main range is 2807.00 to 2947.00. The index is currently testing its retracement zone at 2877.00 to 2860.50. This zone is controlling the near-term direction of the market. Holding above it will give the index a slight upside bias. Crossing to the weak side of this zone will give the index a downside bias.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index today is likely to be determined by trader reaction to the 50% level at 2877.00.

A sustained move over 2877.00 will indicate the presence of buyers. The first target is an uptrending Gann angle at 2883.00. Overtaking this angle will indicate the buying is getting stronger. This could lead to a test of the downtrending Gann angle at 2899.00.

We could see selling on the first test of 2899.00. However, taking it out with conviction could trigger an acceleration to the upside with the next target angle coming in at 2923.00 today.

A sustained move under 2877.00 will signal the presence of sellers. This is the trigger point for a potential spike into 2860.50. The daily chart begins to open up to the downside under this level with the first target angle coming in at 2845.00. This is followed by another target angle at 2826.00. This is the last potential support angle before the 2807.00 main bottom.

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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