E-mini S&P 500 Index (ES) Futures Technical Analysis – April 2, 2018 Forecast

June E-mini S&P 500 Index futures are called lower based on the pre-market trade. Investors are concerned that China’s decision to place tariffs on U.S. goods may escalate into a trade war.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2586.00 will signal a resumption of the downtrend.

The minor trend is also down. A move through 2679.75 will change the minor trend to up and signal a shift in momentum to the upside.

The short-term range is 2586.00 to 2679.75. Its 50% level or pivot is at 2633.00. This pivot is controlling the short-term direction of the market. The index is currently straddling this pivot.

The intermediate range is 2807.25 to 2586.00. Its retracement zone is 2696.75 to 2722.75. This zone is resistance. Inside this zone is the main 50% level at 2708.00. This area is a resistance cluster.

Daily Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to 2633.00.

A sustained move under 2633.00 will indicate the presence of sellers. This could trigger a break into an uptrending Gann angle at 2606.50. This angle has been providing support since March 23.

If 2606.50 fails as support then look for a break into the bottom at 2586.00. This is followed by a pair of uptrending Gann angles at 2569.50 and 2551.00. The latter is the last potential support angle before the 2532.50 main bottom.

A sustained move over 2633.00 will signal the presence of buyers. This move could create the upside momentum needed to challenge an uptrending Gann angle at 2680.50, a 50% level at 2696.75 and a downtrending Gann angle at 2703.25.

Watch the price action and read the order flow at 2633.00 all session. Trader reaction to this level will tell us if the sellers or the buyers are in control today.