E-mini S&P 500 Index (ES) Futures Technical Analysis – 2491.00 Could Be Trigger Point for Upside Breakout

June E-mini S&P 500 Index futures are edging higher shortly before the mid-session on Tuesday amid more monetary stimulus and progress on a possible treatment for the coronavirus.

After whip-sawing earlier in the session, the index stabilized after the Federal Reserve announced measures to help companies struggling to get short-term funding amid the outbreak. The market has been hampered by a lack of demand for paper issued, and Wall Street has been looking for central bank intervention along the lines of what happened during the financial crisis.

At 15:11 GMT, June E-mini S&P 500 Index futures are trading 2456.75, up 51.50 or +2.14%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2350.00 will signal a resumption of the downtrend. The main trend will change to up on a move through the last swing top at 3131.00. This is highly unlikely but there is room for a normal 50% to 61.8% retracement.

The main range is 3131.00 to 2350.00. Its retracement zone at 2740.50 to 2832.75 is the primary upside target.

Daily Technical Forecast

Based on the early price action and the current price at 2456.75, the direction of the June E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the steep downtrending Gann angle at 2491.00.

Bullish Scenario

Taking out 2491.00 could trigger an acceleration to the upside with the next major target a 50% level at 2740.50. This is followed by a pair of downtrending Gann angles at 2811.00 and 2821.75, followed by a Fibonacci level at 2832.75.

Bearish Scenario

A sustained move under 2491.00 will indicate the presence of sellers. This angle has been guiding the index lower since the 3131.00 main top on March 3. Its resistance, but it’s also the trigger point for a potential acceleration to the upside.

If 2350.00 fails then look for the selling to extend into 2319.25. This is the trigger point for an acceleration to the downside.