June E-mini S&P 500 Index futures are trading slightly higher during the pre-market session. The market is currently straddling a downtrending angle
June E-mini S&P 500 Index futures are trading slightly higher during the pre-market session. The market is currently straddling a downtrending angle while in a position to take out this week’s higher. Clearly, this is some kind of pivot area that will determine the direction of the market today.
Based on the current price at 2091.50, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 2091.75 and the high at 2092.50.
A sustained move over 2092.50 will signal the presence of buyers. This could trigger a fast rally into the April 28 main top at 2094.25.
Taking out 2094.25 will reaffirm the uptrend and could create enough upside momentum to challenge the next downtrending angle at 2098.50. This is the last potential resistance angle before the 2105.25 main top.
The inability to overcome or sustain a rally over the downtrending angle at 2091.75 will signal the presence of sellers. The daily chart is wide open under this angle so we could see the start of a steep decline. The next downside targets come in at 2078.25 and 2070.00.
The trigger point for a steep sell-off is the uptrending angle at 2070.00. The next major support under this angle is the 50% level at 2057.25.
Watch the price action and read the order flow at 2091.75 to 2092.50 all day. Trader reaction to this area will tell us if the bulls are still in control or if the bears are taking over.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.