E-mini S&P 500 Index (ES) Futures Technical Analysis – April 28, 2016 Forecast

June E-mini S&P 500 Index futures are trading sharply lower shortly before the cash market opening. The pre-market price action turned the main trend to down on the daily chart while making 2094.25 a new main top.

The main range is 2012.25 to 2105.25. Its retracement zone is 2058.75 to 2047.75. This is the primary downside target.

Earlier in the session, the main trend turned down on a trade through 2071.00. There was very little follow-through to the downside under this level which suggests a short-covering rally may be coming.

If the selling resumes and takes out 2070.25 then look for the break to extend into the long-term uptrending angle at 2060.25. This is followed by a 50% level at 2058.75. This price is the trigger point for a steep break into the Fibonacci level at 2047.75.

The nearest target on the upside is a downtrending angle at 2081.25. Since the trend is down, sellers are likely to come in on the first test of this angle. Overcoming it, however, could drive the market into the next angle at 2093.25.

Taking out 2093.25 and 2094.25 will change the main trend to up, putting the index in a position to challenge 2099.25 and 2105.25.

Watch the price action and read the order flow at 2081.25 and 2071.00 today. Look for an upside bias to begin on a sustained move over 2081.25 and a downside bias on a sustained move under 2071.00.