Advertisement
Advertisement

E-mini S&P 500 Index (ES) Futures Technical Analysis – September 29, 2017 Forecast

By:
James Hyerczyk
Published: Sep 29, 2017, 08:56 UTC

December E-mini S&P 500 Index futures are trading flat during the pre-market session. Volume is down and traders don’t appear to be too interested in

E-mini S&P 500 Index

December E-mini S&P 500 Index futures are trading flat during the pre-market session. Volume is down and traders don’t appear to be too interested in taking positions ahead of the cash market opening. Some may be waiting to hear from European Central Bank Mario Draghi before committing to either side.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2509.25 will signal a resumption of the uptrend. The main trend will change to down on a move through 2485.00.

On Thursday, the index posted an inside move. This tends to indicate investor indecision and impending volatility.

The short-term range is 2485.00 to 2509.25. Its 50% level or pivot is 2497.00. Holding above this pivot is helping to give the market an upside bias. A trade to the weak side of this level will signal that momentum may be shifting to the downside.

The main range is 2419.25 to 2509.25. If the trend changes to down then its retracement zone at 2464.25 to 2453.50 will become the primary downside target. An uptrending angle passes through this zone at 2463.25, making it a valid downside target.

Daily Forecast

Based on Thursday’s close at 2507.75, the direction of the index today is likely to be determined by trader reaction to the long-term uptrending angle at 2507.25.

A sustained move over 2507.25 will indicate the presence of buyers. This could generate the upside momentum needed to take out the contract high at 2509.25.

A sustained move under 2507.25 will signal the presence of sellers. The first target is the short-term uptrending angle at 2501.00. This is followed by the pivot at 2497.00 and another uptrending angle at 2493.00. This is the last potential support angle before the 2485.00 main bottom.

Not only will the trend turn down on a trade through 2485.00, but the market will also open up to the downside, setting up the possibility of an eventual move into at least 2464.25.

Traders should also be aware that since the market made a new all-time high, a close below 2499.50 will produce a potentially bearish closing price reversal top on the weekly chart.

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.

Did you find this article useful?

Advertisement