E-mini S&P 500 Index (ES) Futures Technical Analysis – May 26, 2016 Forecast

June E-mini S&P 500 Index futures are called slightly better shortly before the cash market opening. The index is posting an inside move which indicates investor indecision and impending volatility. Investors may be a little hesitant about buying strength this close to the all-time high.

The main trend is up according to the daily swing chart. The uptrend will be reaffirmed on a trade through the April 28 main top at 2094.25.

Based on yesterday’s close at 2087.25 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 2092.25.

A sustained move over 2092.25 will indicate the presence of buyers. This may create enough upside momentum to challenge the main top at 2094.25.

Taking out 2094.25 could fuel an acceleration into the next downtrending angle at 2098.75. This is the last potential resistance angle before the 2105.25 main top.

The inability to overcome the angle at 2092.25 will signal the presence of sellers. This could lead to the start of a meaningful break since the first downside target is a downtrending angle at 2079.25.

Crossing to the weak side of the angle at 2079.25 will put the market in a bearish position with the next major target coming in at 2062.00.

Watch the price action and read the order flow at 2092.25 today. Trader reaction to this angle will tell us if investors are still willing to buy strength at current prices and after this week’s strong rally, or if profit-takers are coming in.