E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – November 2, 2018 Forecast

December E-mini S&P 500 Index futures are trading higher shortly ahead of the cash market opening. Traders are responding to reports that the U.S. and China may be close to inking a trade deal. The price action also suggests that investors aren’t paying too much attention to today’s U.S. Non-Farm Payrolls report due to be released at 1230 GMT.

At 1031 GMT, December E-mini S&P 500 Index futures are trading 2757.50, up 19.50 or +0.71%.

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. However, momentum is trending higher. The main trend will change to up on a move through 2824.25. The downtrend will resume on a trade through 2603.00.

The major retracement zone is 2748.50 to 2701.75. Inside this zone is also a retracement zone at 2739.75 to 2713.50. The market is currently trading on the strong side of both zones. These levels are new support.

Daily Technical Forecast

Bullish Scenario

Based on the current price at 2757.50, the support lines up at 2748.50, 2739.75 and an uptrending Gann angle at 2731.00. If the upside momentum continues then look for the rally to extend into a downtrending Gann angle at 2776.25.

Sellers could come in on the first test of 2776.25. Overtaking it could drive the index into the next downtrending Gann angle at 2800.25. This is followed by another downtrending Gann angle at 2812.25. This is the last potential resistance angle before the 2824.25.

Bearish Scenario

On the downside, crossing to the weak side of a downtrending Gann angle at 2728.25 will indicate the selling is getting stronger. This could lead to tests of retracement levels at 2713.50 and 2701.75.

The daily chart is wide open to the downside under 2701.75. This could trigger an acceleration into an uptrending Gann angle at 2667.00.

Simply stated, look for an upside bias to develop on a sustained move over 2731.00 and for a downside bias to develop on a sustained move under 2728.25.

 

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.