E-mini S&P 500 Index (ES) Futures Technical Analysis – 2930.25 Trigger Point for Next Breakout

June E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Tuesday. Today’s rally started overnight and was actually a continuation of yesterday’s strong move. The current rally is being driven by momentum. The catalyst behind the trade is optimism about the prospect of states re-opening the U.S. economy. Today’s gains put the S&P 500 on pace for its biggest one-month gain since 1987.

At 13:36 GMT, June E-mini S&P 500 Index futures are at 2903.00, up 34.00 or +1.19%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the last main top at 2885.00. The new main bottom is 2717.25. A trade through this level will change the main trend to down.

The main range is 3397.75 to 2174.00. The market is currently trading inside its retracement zone at 2785.75 to 2930.25. This zone is controlling the longer-term direction of the index.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2765.50 to 2652.50 is support. This zone stopped the selling at 2717.25 on April 21.

The strongest support is the price cluster at 2785.75 to 2765.50.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2903.00, 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 main Fibonacci level at 2930.25.

Bullish Scenario

A sustained move over 2930.25 will indicate the presence of buyers. If this move can create enough upside momentum then watch for an acceleration to the upside with the nearest target the main top at 3131.00.

Bearish Scenario

The ability to overcome 2930.25 will signal the presence of sellers. Breaking back under the former top at 2885.00 will indicate the selling pressure is getting stronger. This could trigger a further break into the price cluster at 2785.75 to 2765.50.