E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 8, 2018 Forecast

December E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. Earlier in the session, buyers attempted to follow-through to the upside following yesterday’s strong rally, but the move stalled as investors expressed caution ahead of today’s release of the Fed’s latest interest decision and monetary policy statement.

Yesterday’s strong rally was fueled by relief over the outcome of the mid-term elections and optimism that the Democrats and Republicans would set aside politics in an effort to keep the economy growing.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on a trade through 7143.25. The next upside target is the main top at 7368.50. The main trend will change to down on a trade through 6865.00.

Today is also the eighth day up from the 6850.50 bottom on October 29. This puts the index inside the window of time for a potentially bearish closing price reversal top. We’ve already had the higher-high, now all we need is the lower close to form this chart pattern.

The price action today will be influenced by a series of retracement levels. They suggest that the way of least resistance is to the upside. Any selling is likely to be labored.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by the main 50% level at 7154.50.

A sustained move over 7154.50 will indicate the presence of buyers. If this generates enough upside momentum then look for buyers to take a run at the main Fibonacci level at 7290.25. This is a potential trigger point for a surge into the main top at 7368.50. Taking out this level will reaffirm the uptrend.

A sustained move under 7154.50 will signal the presence of sellers. The first downside target is a short-term Fibonacci level at 7067.50, followed by a short-term 50% level at 6974.50.

More aggressive traders can use yesterday’s close at 7218.50 as the key price to watch today. Holding above it will indicate the buying is getting stronger. A break below it will put the index in a position to form a potentially bearish closing price reversal top.

E-mini S&P 500 Index (ES) Futures Technical Analysis – November 8, 2018 Forecast

December E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. Earlier today, the index ran into resistance at a key retracement level. Additionally, there wasn’t much of a follow-through to the upside after yesterday’s strong rally. It was a relief rally fueled by the outcome of the mid-term elections that came in as forecast. President Trump also helped goose the market higher when he offered the Democrats an olive branch, suggesting they work together with the Republicans on projects designed to keep the economy growing.

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

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 2824.25 will change the main trend to up.

The market is not in a position to change the trend to down. However, it is in the window of time for a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day counter-trend correction.

The main range is 2947.00 to 2603.00. The index is currently trading inside its retracement zone at 2815.50 to 2775.00. This zone is controlling the near-term direction of the market.

The major retracement zone is 2748.50 to 2701.50. This zone is support and also contributing to the upside bias. It represents 50% to 61.8% of the 2018 trading range.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to the Fibonacci level at 2815.50.

Taking out 2815.50 with conviction and sustaining the move will indicate the presence of buyers. The first target is the main top at 2824.25. A trade through this level will change the main trend to up.

The daily chart is wide open to the upside with 2947.00 the next major target so watch for an acceleration to the upside if the buying volume comes in strong over 2824.25.

A sustained move under 2815.50 will signal the presence of sellers. Turning lower for the session will also be a sign of weakness since it puts the index in a position to form a daily closing price reversal top. The first two downside targets are layered at 2775.00 and 2748.50.

DAX Index Daily Price Forecast – Dax To Continue Bullish Price Action

Germany equities were higher at the close on Wednesday, as gains in the Food & Beverages, Pharmaceuticals & Healthcare and Utilities sectors propelled shares higher. At the close in Frankfurt, the DAX rose 0.83%, while the MDAX index added 0.90%, and the TecDAX index gained 1.16%. Advancing stocks outnumbered falling ones by 496 to 200 and 84 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 2.09% to 19.21. European markets closed positive yesterday supported by bullish EURO in broad market and high level of risk appetite among investors following announcement of US mid-term election results.

Hawkish Cues From International Markets & Upbeat EURO Are Expected To Inspire Positive Price Action in DAX

Asian stocks rose to a one-month peak on Thursday as investors, relieved to have moved past the U.S. midterm elections without any major political surprises, drove a Wall Street rally, while the dollar bounced and pulled away from 2-1/2-week lows. Wall Street’s main indexes rose more than 2 percent on Wednesday, led by the technology and healthcare sectors as the market breathed a sigh of relief after the U.S. midterm elections, in which Democrats wrested control of the House of Representatives and Republicans retained the Senate. Moving forward, as investors have already priced in a split decision outcome in US mid term elections, the outlook is expected to be positive for risky assets.

In short term, Investors focus remains on FOMC update scheduled to release later today and while investors don’t expect any high impact update or rate hike during this meeting as Fed is expected to hike interest rates during its December meet, the Fed meet today is expected to provide forward guidance for 2019. DAX futures trading in international market is trading positive ahead of European market hours up by 0.43% on the day. DAX index is expected to open positive supported by hawkish cues from Wall Street and key Asian markets. German equities are also expected to see bullish support from positive EURO in broad market during today’s market hours which should help DAX maintain upward movement across the day.

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 7, 2018 Forecast

The major technology index is trading at its highest level since October 24 on Wednesday as investors continue to respond to the outcome of the mid-term elections which resulted in a split Congress. Today’s move is more of a relief rally since the outcome of the election lifted some of the uncertainty that had clouded the markets for over a month.

At 1635 GMT, December E-mini NASDAQ-100 Index futures are trading 7148.50, up 132.00 or +1.88%.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the last swing top at 7143.25. The new swing bottom is 6865.00. A trade through this level will change the main trend to down.

The main range is 7728.75 to 6580.50. The index is currently testing its retracement zone at 7154.75 to 7290.25. This zone is controlling the longer-term direction of the index.

The minor range is 7368.50 to 6580.50. Its retracement zone at 7067.50 to 6974.50 is new support.

The major support zone is 6822.75 to 6609.00. It provided support on October 29 when the index bottomed at 6580.50.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 7154.75.

Taking out 7154.75 and sustaining the move will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible rally into the Fibonacci level at 7290.25.

Overtaking 7290.25 will indicate the buying is getting stronger. This could fuel a move into the next main top at 7368.50. This is a potential trigger point for an acceleration to the upside. The daily chart shows no resistance until 7728.75.

A sustained move under 7154.50 will signal the return of sellers. This could trigger a break into 7067.50, followed by 6974.50. This is the last support before the 6865.00 main bottom.

S&P 500 Price Forecast November 8

We have cleared the 2750 level rather decidedly during trading on Wednesday, and I think at this point we are likely to see quite a bit of volatility just above at the 2800 level. If we can clear that, an area that I think coincides nicely with the purple ellipse on the chart, then I think finally we’ve cleared enough trouble to anticipate a move much higher, perhaps to the 2900 level or even the 3000 level. Remember, there is a seasonality to the S&P 500 known as the “Santa Claus rally”, and I think a lot of traders will be looking for that.

S&P 500 Video 08.11.18

Conversely, if we break down below the 2700 level, we will almost certainly reach the lows again. I don’t think there’s going to be too much in the way of trouble ahead, with perhaps the exception of the Sino-American trade war which of course is one of the biggest problems. Beyond that, we also have rising interest rates in America, but with the economy booming the way it is in the United States, that’s actually a good thing. I think that we are going to make a serious attempt to break out to the upside. I would wait for a daily close above 2800, and then be a buyer of this market. I would hope and anticipate that the 2750 level should offer a somewhat significant amount of support in this market, so breaking down below that would lead to at best a range bound opportunity for traders. The S&P 500 has seen a lot of technical damage as of late, but it looks like we are trying to turn the boat around.

E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 7, 2018 Forecast

The blue chip U.S. stock average is trading higher on Wednesday, shortly after the opening. Investors are apparently celebrating the end of the mid-term elections which resulted in a split Congress. Investors are expressing relief because the event lifted some of the uncertainty that had created volatile trading conditions in the market for over a little more than a month.

At 1546 GMT, the December E-mini Dow Jones Industrial Average is trading 25786, up 145 or 0.57%.

E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the October 17 main top at 25845. However, the rally stalled at 25858, just shy of the major Fibonacci level at 25866.

The market is in no position to change the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top on a close under 25641.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the major Fibonacci level at 25866.

Taking out 25866 with conviction will indicate the buying is getting stronger. This is a potential trigger point for an acceleration to the upside with the next major target coming in at 26966. The daily chart shows there is no major resistance between the current price and the October 3 main top.

The inability to take out and sustain a really over 25866 will signal the return of sellers. Breaking back under yesterday’s close at 25641 will indicate the selling is greater than the buying at current price levels. This could trigger a further break into the main 50% level at 25526.

The 50% level at 25526 is a potential trigger point for a further decline into 25233.

E-mini S&P 500 Index (ES) Futures Technical Analysis – November 7, 2018 Forecast

The broad-based U.S. stock index is trading higher on Wednesday, shortly after the opening. The catalysts behind the rally are the mid-term election results. Democrats won back the House of Representatives and the Republicans retained control of the Senate. This was the outcome that market participants were expecting, dampening predictions of heightened volatility.

At 1500 GMT, December E-mini S&P 500 Index futures were trading 2777.50, up 18.50 or +0.67%.

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

Daily Swing Chart 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 trade through 2824.25.

Today is the seventh day up from the last main bottom. This puts the index inside the window of time for a closing price reversal top. This could trigger the start of a 2 to 3 day correction.

The price action is being controlled by a number of retracement levels. You can see from the chart that the way of least resistance is up. Any selling pressure is likely to be labored.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 2775.00.

A sustained move over 2775.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into the Fib level at 2815.50, followed closely by the main top at 2824.25. This is a potential trigger point for an acceleration to the upside since the daily chart shows there is no major resistance until 2947.00.

A sustained move under 2775.00 will signal the presence of sellers. This could trigger the start of a labored break with potential support levels layered at 2748.50 and 2739.75.

Taking out 2739.75 could trigger an even steeper break to 2713.50.

Traders should also watch yesterday’s close at 2759.00. A break back under this level will put the index in a position to form a potentially bearish closing price reversal top.

DAX Index Daily Price Forecast – DAX To Move Upwards Supported By Hawkish EURO in Broad Market

Germany equities were mixed at the close on Tuesday, as gains in the Transportation & Logistics, Financial Services and Media sectors propelled shares higher while losses in the Retail, Food & Beverages and Utilities sectors led shares lower. At the close in Frankfurt, the DAX declined 0.09%, while the MDAX index lost 0.19%, and the TecDAX index climbed 0.33%. Declining stocks outnumbered rising ones by 360 to 335 and 85 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 0.36% to 19.62. European markets closed in red yesterday as investors were on cautious mood while awaiting for US election results.

Cautious Investor Sentiment Surrounding US Election Results Likely To Cap DAX’s Upside Move

Asian shares dropped on early Asian market hours as early results of the U.S. midterm elections started to trickle in, with investors bracing for the Republicans to lose their grip on Congress. Investors expectations of split congress put high level of bearish pressure on equity and forex markets which was further affected by US election results trickling in. Voter turnout in national elections, normally lower when the presidency is not at stake, could be the highest for a midterm election in 50 years as opposition Democrats are favored by election forecasters to pick up the 23 seats they need to gain a majority in the House, but have slimmer chances of gaining control of the Senate, as per opinion polls taken ahead of announcement of actual results.

All major Asian market such as Tokyo, Shanghai, Shanghai and Singapore are trading in red with investors sentiment in equity market looking highly dovish as election results in US seems to be negative for US Greenback. However positive momentum of the shared currency against US Greenback is expected to keep European equity markets supported during today’s trading hours. DAX futures trading in international market was positive ahead of Frankfurt market opening with over 0.20% increase in value despite negative tone surrounding Asian equities. DAX is expected to open positive and trade range bound with bullish bias during today’s market hours. However there is also chance for DAX to turn bearish over cues from Asian equities.

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 6, 2018 Forecast

An index of technology stocks is trading higher on Tuesday, shortly after the cash market opening. Volume is light as investors prepare for the results of the U.S. mid-term elections. Traders can’t agree on the outcome of the elections which is why they are bracing for heightened volatility. The latest poll shows the Democrats leading with a 7 point advantage.

At 1550 GMT, December E-mini NASDAQ-100 Index futures are trading 7004.00, up 54.50 or +0.73%.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 7143.25 will change the main trend to up with the next target a main top at 7368.50. A move through 6580.50 will signal a resumption of the downtrend with 6493.00 and 6385.25 the next targets.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to the 50% level at 6974.50.

A sustained move over 6974.50 will indicate the presence of buyers. If this move generates enough upside momentum then look for a surge into the Fibonacci level at 7067.50. This is also the trigger point for an acceleration into the main top at 7143.25 and the major 50% level at 7154.75.

A sustained move under 6974.50 will signal the presence of sellers. If this move generates enough downside momentum then look for a possible break into a series of levels at 6861.75, followed by 6822.75 then 6795.50.

We’re not looking for much movement today. We’re also looking for below average volume. The early price action suggests a range of 6861.75 to 7067.50 with 6974.50 acting like a pivot throughout the day.

E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 6, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening. Volume is light as investors express some caution due to the U.S. mid-term elections. No one is sure of the outcome of elections, but the crowd seems to think the Democrats will gain control of the House of Representatives and the Republicans will retain control of the Senate.

At 1451 GMT, the market is trading 25486, up 45 or +0.18%.

E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the main trend indicator chart. However, momentum is trending higher. A move through 25684 will indicate the buying is getting stronger. A trade through 25845 will change the main trend to up. The daily chart indicates there is plenty of room to the upside with the next target coming in at 26966.

The minor trend is up. This is helping to generate the upside momentum.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average futures contract is likely to be determined by a series of retracement levels. They indicate there is plenty of open space to the upside, and congestion to the downside.

Based on the early price action, the direction of the futures contract is likely to be determined by trader reaction to the 50% level at 25526.

A sustained move over 25526 will indicate the presence of buyers. Taking out the high at 25684 will indicate the buying is getting stronger with the main top at 25845 and the Fibonacci level at 25866 the next upside targets.

A sustained move under 25526 will signal the presence of sellers. The first downside target is a support cluster at 25233 to 25173. If 21573 fails as support then look for the selling to possibly extend into a series of levels at 24966, 24885, 24824 and 24696.

Essentially, the way of least resistance is up. Any sell-off is likely to be labored. Volume is expected to be light so be careful buying strength and selling weakness.

E-mini S&P 500 Index (ES) Futures Technical Analysis – November 6, 2018 Forecast

December E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. Volume and volatility are expected to be low on Tuesday as investors await the results from the U.S. mid-term elections. Traders aren’t sure about the results or the direction of the market but they do anticipate heightened volatility.

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

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. The main trend changes to up on a move through 2824.25. A trade through 2603.00 will signal a resumption of the downtrend.

The minor trend is up. This is why momentum is trending higher.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to a series of retracement levels. Based on the early trade, the key level to watch is a Fibonacci level at 2739.75.

A sustained move over 2739.75 will indicate the presence of buyers. Overtaking the 50% level at 2748.50 will indicate the buying is getting stronger. This could trigger an acceleration into 2766.25 then 2775.00.

A sustained move under 2739.75 will signal the presence of sellers. This is a potential trigger point for an acceleration into the 50% level at 2713.50, followed by a Fib level at 2701.50. Both levels have provided support three out of the last four sessions.

Essentially, we’re looking for a rangebound trade today. Due to the low volume and investor uncertainty, be careful buying strength and selling weakness. You don’t want to get caught in a bull or bear trap.

USD/JPY Fundamental Daily Forecast – Strengthens Over 113.356, Weakens Under 112.978

The Dollar/Yen traded in a tight range throughout the session on Monday with the price action primarily driven by below average volume as most major currency players took to the sidelines before U.S. mid-term elections on Tuesday that may fuel the return of heightened volatility to the global market place.

At 2029 GMT, the USD/JPY is trading 113.197, up 0.019 or +0.02%.

The tight trading range and low volume suggests most of the price activity on Monday was position-squaring as investors head into Tuesday’s mid-term elections with no particular bias due to the polls showing the results too difficult to predict. The latest estimates show the Democratic Party facing a strong chance of winning control of the U.S. House of Representatives, with Republicans likely to keep the Senate.

Technically, the USD/JPY is in an uptrend on the daily chart. A trade through 113.384 will signal a resumption of the uptrend while a trade through 112.520 will change the main trend to down.

The daily chart shows that taking out 113.384 with conviction could trigger an acceleration to the upside since the next major resistance doesn’t come in until 114.580.

A change in trend to down is likely to drive the USD/JPY toward the October 26 main bottom at 111.375. Sellers would have to take out this level to trigger an acceleration to the downside.

The main range is the August 21 bottom at 109.770 and the October 3 top at 114.580. Its retracement zone at 112.175 to 111.607 is a key support zone. This zone stopped the selling on October 15 at 111.622 and on October 26 at 111.375.

The short-term range is 114.580 to 111.375. Its retracement zone at 112.978 to 113.356. This zone has been acting like resistance the past four sessions. The next move in the USD/JPY is likely to be determined by trader reaction to this zone.

Forecast

A rangebound trade can only mean two things:  trader indecision and impending volatility. Of course, the volatility is likely to be fueled by the results of the election.

We’re going into Tuesday taking a simple approach. If the Republican Party keeps control of the House and Senate than demand for risk is likely to soar. This should be bullish for the Dollar/Yen because of the carry trade.

If power in the House and Senate shifts to the Democratic Party the demand for risk should drop, sending stocks sharply lower. This should pressure the USD/JPY because investors will use the Japanese Yen as a safe-haven asset.

Mixed results should also cause a volatility reaction, but instead of the direction of the USD/JPY being one-sided, it could produce a two-sided trade. However, I do think that the risk is to the downside because losing the House despite winning the Senate will still weaken the position of the Republicans and this won’t be good for the global equity markets.

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trading Between 50% Levels at 6974.50 and 6861.75 Indicates Investor Indecision

December E-mini NASDAQ-100 Index futures are trading lower at the mid-session, bucking the intraday trend of the other two major U.S. stock indexes. The selling was led by sharp declines in Apple and Amazon. Apple shares dropped 3.3 percent while Amazon shares fell 4 percent. Apple was driven lower by a downgrade by Rosenblatt Securities amid expectations of lower iPhones sales. Sellers hit Amazon after President Trump said the administration was looking into antitrust violations committed by the e-commerce giant.

At 1804 GMT, December E-mini NASDAQ-100 Index futures are trading 6895.75, down 84.50 or -1.21%.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However daily momentum is trending higher. Today’s price action made 7143.25 a new main top. A trade through this level will change the main trend to up. A move through 6580.50 will signal a resumption of the downtrend.

The minor trend is up. This is why momentum is trending higher. A trade through 7143.25 and 7175.00 will indicate the buying is getting stronger.

On the upside the main resistance zone is 7154.75 to 7290.25. On the downside, the main support zone is 6822.75 to 6609.00.

One short-term range is 7368.50 to 6580.50. Its retracement zone at 6974.50 to 7067.50 is acting like resistance on Monday.

The new short-term range is 6580.50 to 7143.25. Its retracement zone at 6861.75 to 6795.50 is the next downside target. Inside this zone is a major 50% level at 6822.75.

Daily Swing Chart Technical Forecast

Based on the current price at 6895.75, and the earlier price action, the direction of the December E-mini NASDAQ-100 Index futures contract into the close is likely to be determined by trader reaction to the short-term 50% level at 6861.75.

A sustained move over 6861.75 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible retest of 6974.50 then today’s intraday high at 6998.50. This could trigger a short-covering rally into 7067.50.

Taking out 6861.75 late in the session could drive the index into 6822.75 then 6795.50. The latter is the trigger point for an acceleration to the downside with 6608.09 the next major downside target.

With volume well below average, it’s going to take a lot of effort to drive the index through the series of bottoms at 6861.75, 6822.75 and 6795.50, but if these levels are broken the payoff could be a steep sell-off into 6609.00.

 

S&P 500 Price Forecast November 6

The S&P 500 is probably going to be a bit volatile during the day as traders try to get in front of the election results of midterms. Ultimately, this is a market that I think will probably recognize the 2750 level as a major resistance, so if we were to break down below the 2700 level, that would fire off a fresh round of selling due to the shooting star on Friday. Otherwise, if we break above the top of the candle stick from the session on Friday, that would be a very strong signal that the market could go to 2800. Breaking above that level could open the door to much higher levels.

S&P 500 Video 06.11.18

There’s a lot of talk as to what the elections will accomplish, and if the Democrats take over the House of Representatives what that will mean. At this point, I think that’s probably what the market is already starting to price that in, so if the Republicans do in fact hang onto the House of Representatives I think that would probably bode well for permanent tax cuts and the like. That should be good for the stock market. At this point though, I think there are so many moving pieces that a lot of people were afraid to put significant amounts of money into the market, so with that in mind I suspect we probably still have somewhat of a downward slant until we get clarity.

E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 5, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening. Volume and volatility are relatively tight as many of the major players have taken to the sidelines ahead of Tuesday’s U.S. mid-term elections. Investors are a little indecisive because several of the polls indicate the results are too close to call. Generally speaking, stocks are likely to be supported if the Republicans retain control of Congress.

At 1448 GMT, December E-mini Dow Jones Industrial Average futures are trading at 25318, up 77 or +0.31%.

E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 25845 will change the main trend to up. A move through 24086 will signal a resumption of the downtrend.

The minor trend is up. A trade through the minor top at 25684 will indicate that the buying is getting stronger.

The major, longer-term retracement zone is 25233 to 24824. Inside this zone is a short-term retracement zone at 25173 to 24966. Combining the two zones creates a price cluster at 25233 to 25173. This area is providing support today.

The main range is 26966 to 24086. Its retracement zone at 25526 to 25866 is resistance. This zone stopped the rally at 25684 on Friday.

If 24086 to 25684 becomes a range then its retracement zone at 24885 to 24696 will become the primary downside target zone.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini Dow Jones Industrial Average futures contract the rest of the session is likely to be determined by trader reaction to 25233 to 25173.

A sustained move over 25233 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential acceleration into 25526.

A sustained move under 25173 will signal the presence of sellers. This could trigger a break into a series of retracement levels at 24966, 24885 and 24824.

We’re looking for a possible two-sided trade today due to the low volume. Traders appear to be a little reluctant to take a position ahead of the Tuesday’s elections.

E-mini S&P 500 Index (ES) Futures Technical Analysis – November 5, 2018 Forecast

December E-mini S&P 500 Index futures are trading slightly better shortly after the cash market opening. Volume and volatility are relatively low with most of the major players on the sidelines ahead of Tuesday’s U.S. mid-term elections. The uncertainty over the results is carrying too much risk for investors to decisively choose a direction at this time.

At 1338 GMT, December E-mini S&P 500 Index futures are trading 2729.50, up 5.25 or +0.19%.

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

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 2824.25 will change the main trend to up. A move through 2603.00 will signal a resumption of the downtrend.

The minor trend is up. It turned up last week when buyers took out 2707.00. This shifted momentum to the upside. The new minor top is 2766.25. A trade through this level will indicate the buying is getting stronger.

The main range is 2947.00 to 2603.00. Its retracement zone at 2775.00 to 2815.50 is resistance.

Another retracement zone comes in at 2748.50 to 2701.75. Inside this zone is 2713.50 to 2739.75. The market has been straddling these zones for four trading sessions, indicating investor indecision.

The short-term range is 2603.00 to 2766.25. Its retracement zone at 2684.50 to 2665.25 is the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 2713.50.

A sustained move over 2713.50 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally into 2739.75 then 2748.50.

The index will begin to strengthen over 2748.50 with the next targets 2766.25 then 2775.00.

A sustained move under 2713.50 will signal the presence of sellers. This is followed by a series of potential support levels at 2701.50, 2684.50 and 2665.25.

Basically, we’re looking for a choppy, two-sided trade inside 2713.50 to 2739.75 and 2701.50 to 2748.50.

DAX Index Daily Price Forecast – Geo Political Events Affect DAX’s Momentum

Germany equities were higher at the close on Friday, as gains in the Basic Resources, Media and Technology sectors propelled shares higher. At the close in Frankfurt, the DAX added 0.66%, while the MDAX index added 0.85%, and the TecDAX index gained 0.19%. Advancing stocks outnumbered falling ones by 460 to 231 and 22 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 4.61% to 19.64. European equity market saw positive closing on Friday supporting high risk appetite among investors and positive momentum surrounding the common currency in broad market.

US Election Updates & Sino-US Trade War Proceedings Upsets Momentum across Key Equity Markets

Asian stocks sank on Monday as fears of faster rate hikes in the United States and uncertainty around the Sino-U.S. trade war deterred investment in riskier assets. Markets are expected to be skittish ahead of U.S. congressional midterm elections on Tuesday. Opinion polls show a strong chance that the Democratic Party could win control of the House of Representatives after two years of wielding no practical political power in Washington, with President Donald Trump’s Republican Party likely to hold the Senate. Asian stocks also saw bearish cues from bearish equity market closing on Friday despite positive macro data as investors were worries over possibility of delay in trade deal between the United States and China, with additional bearish cues emerging from China as President Xi Jinping acknowledged that conditions abroad had created some challenges for the Chinese economy.

While these factors led to overall bearish price action across key Asian markets such as Shanghai, Hong Kong, Japan and India, the downside move was limited owing to promise of lower import tariffs and prospect of broader market access made by Chinese President Xi Jinping. Analysts believe that although trade growth has held steady, concerns are rising in business surveys. DAX Futures trading in international market is down by 0.25% as investor sentiment has turned cautious ahead of US mid term election results and proceedings of Sino-US trade war related talks. European equity markets are expected to follow cues from Asian markets and Wall Street during today’s market session. So there is high possibility for DAX index to open in negative and trade range bound with bearish bias during today’s market hours.

S&P 500 Weekly Price Forecast – stock traders turn bullish for the week

The S&P 500 broke down during the week, reaching to the 2600 level underneath, which is an area that has been important more than once. By bouncing the way it has from there, it shows that there is still some resiliency in this market, and I think that the 2750 level above is resistance. This makes sense, because there is a shooting star from a couple of weeks ago, which is a strong sign of resistance. At this point, the market continues to be a bit skittish, and I do think that there will be days or even weeks that we sell off quite drastically, but at this point it looks like we are at least trying to stabilize. Longer-term investors will probably be paying attention to the 2500 level underneath as a major floor, and at this point I think that there are still a lot of traders out there that are looking to aim towards the 3000 handle.

S&P 500 Video 05.11.18

There has been a lot of technical damage in the stock markets, so it makes sense that we could continue to struggle. I think that longer-term traders are probably looking to pick up value but if you choose to do the same thing I would do so in very small increments as it won’t take much in the way of fear and negative headlines to push this market lower again. I think at this point it’s only a matter time before we get a pullback. However, the pullback could be a potential buying opportunity.

S&P 500 Midday Technical Analysis November 2

The S&P 500 has rallied a bit going into the figure on Friday but has since pulled back just a bit. I think that the stock market will probably continue to try to stay somewhat elevated but I would not be surprised at all to see a bit of profit taking going into the weekend as a headline could have the futures markets collapsing on Monday morning. In a world that has seen a lot of risk aversion lately, it would not be surprising at all to see that exact profit taking happen.

S&P 500 Midday Video 02.11.18

The 2750 level is obviously important, and therefore I think that it would be surprising to hang about this area, as it will attract a lot of attention. This is an area that has seen a lot of resistance and support in the past, so I think there’s a lot of dynamic forces at play here. If we do pull back, I would anticipate that the 2725 level could be important, just as the area has seen a bit of buying recently. Ultimately, this is a market that I think continues to be a bit skittish as there are a lot of headlines out there involving China, interest rates are going higher, and a whole plethora of other concerns involving geopolitics as per usual. Again, I think profit taking makes more sense than anything else right here.

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.