E-mini S&P 500 Index (ES) Futures Technical Analysis – Momentum Could Be Shifting; New Minor Top 2718.50

June E-mini S&P 500 Index futures are trading lower at the mid-session, driven by profit-taking after posting an impressive 12 day rally. The catalyst behind the selling pressure is rising U.S. Treasury yields. Investors feel that rising interest rates are indicative of higher inflation which tends to eat into corporate profits.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2718.50 will signal a resumption of the uptrend.

Today’s lower-low price action also formed a new minor top at 2718.50.

The major retracement zone at 2707.75 to 2746.25 was the primary upside target of the rally and could be acting like resistance.

The next key level is the 50% price or pivot at 2679.75.

The new short-term range is 2552.00 to 2718.50. Its retracement zone at 2635.25 to 2615.50 is the new primary downside target.

Daily Swing Chart Technical Forecast

Based on yesterday move and today’s price action, the direction of the June E-mini S&P 500 Index the rest of the session will be determined by trader reaction to the 50% level at 2707.75.

A sustained move under 2707.75 will signal the return of sellers. This could create the downside momentum needed to challenge the next 50% level at 2679.75.

The 50% level at 2679.75 is also the change in trend point so crossing to the weak side of this level could trigger an acceleration to the downside.

A sustained move over 2707.75 will indicate the presence of buyers. This could lead to a retest of 2718.50. This could possibly fuel a rally into 2749.25 over the near-term.

Watch the price action and read the order flow at 2707.75 all session.