E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – October 25, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. There was no follow-through to the downside following yesterday’s steep sell-off. The session begins with the index on the weak side of a major retracement zone. This zone is likely the first upside target today.

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. A trade through 2652.25 will indicate the return of sellers. If the move creates enough downside momentum then look for the selling to extend into the May 3 bottom at 2602.75. This is followed by the April 2 bottom at 2562.50.

The main range is 2562.50 to 2947.00. Its retracement zone at 2701.75 to 2748.50 is controlling the direction of the index. This zone is new resistance.

E-mini S&P 500 Index (Close-Up)
Daily December E-mini S&P 500 Index (Close-Up)

Daily Technical Forecast

Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to yesterday’s low at 2652.25.

A sustained move over 2652.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the main Fibonacci level at 2701.75. This is followed by the uptrending Gann angle at 2707.50 and the downtrending Gann angle at 2728.25. Since the main trend is down, sellers are likely to come in on a test of this angle.

A sustained move under 2652.25 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to extend into the next uptrending Gann angle at 2635.00.

Taking out 2635.00 will indicate the selling is getting stronger with the next targets 2602.75 and 2598.75. The latter is the last potential support angle before the 2562.50 main bottom.

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.