E-mini S&P 500 Index (ES) Futures Technical Analysis – April 11, 2019 Forecast

June E-mini S&P 500 Index futures are trading flat shortly after the cash market opening. Since the Fed minutes didn’t reveal anything that could derail the rally, traders have shifted their focus back to progress on U.S.-China trade negotiations.

Traders are betting that positive comments from U.S. Treasury Secretary Steven Mnuchin will lead to a timely trade deal. On Wednesday, Mnuchin said that Washington and Beijing have “pretty much agreed on an enforcement mechanism” for when a deal is struck.

At 13:33 GMT, June E-mini S&P 500 Index futures are trading 2895.25, up 0.50 or 0.01%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, Tuesday’s closing price reversal top may have killed the upside momentum.

A trade through 2900.00 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through 2877.25 will confirm the closing price reversal top. This could lead to a 2 to 3 day correction.

The short-term range is 2789.50 to 2900.00. Its retracement zone at 2844.75 to 2831.75 is the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 2893.50.

Bullish Scenario

A sustained move over 2893.50 will indicate the presence of buyers. The next targets are the main top at 2900.00 and an uptrending Gann angle at 2903.00.

Taking out 2903.00 could trigger an acceleration to the upside with the next target angle coming in at 2918.50. Crossing to the strong side of this angle will put the index in a bullish position.

Bearish Scenario

A sustained move under 2893.50 will signal the presence of sellers. The first target is 2877.25.

Look for an acceleration to the downside if 2877.25 fails as support. The daily chart indicates there is plenty of room to the downside under this support with 2844.75 the next likely target.