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E-mini S&P 500 Index (ES) Futures Technical Analysis – April 23, 2018 Forecast

By:
James Hyerczyk
Published: Apr 23, 2018, 13:27 UTC

Based on the current price and the early price action, the direction of the index today is likely to be determined by trader reaction to the 50% level at 2679.75.

E-mini S&P 500 Index

June E-mini S&P 500 Index futures are trading slightly better shortly before the cash market opening. Traders have been holding the index in a tight range in response to the U.S. 10-year Treasury note’s move toward the psychological 3 percent level. A trade though this level could put pressure on the index although the primary focus for investors this week remains earnings results.

E-mini S&P 500 Index
Daily June E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is showing signs of shifting to the downside. A trade through 2718.50 will signal a resumption of the uptrend. The main trend will change to down on a trade through 2552.00.

Most of the price action is still being dictated by a series of retracement levels that traders have been trying to shed since the beginning of the month.

On the upside, the resistance zone is 2708.00 to 2749.25. Last week’s rally stopped inside this zone at 2718.50.

The short-term range is 2552.00 to 2718.50. Its retracement zone at 2635.25 to 2615.50 is the primary downside target. Since the main trend is up, buyers may show up on a test of this zone. They are going to try to produce a secondary higher bottom.

The intermediate range is 2807.25 to 2552.00. Its 50% level or pivot is 2679.75.

Daily Swing Chart Technical Forecast

Based on the current price and the early price action, the direction of the index today is likely to be determined by trader reaction to the 50% level at 2679.75.

A sustained move under 2679.75 will indicate the presence of sellers. This could drive the market into Friday’s low at 2659.75. This is the potential trigger point for an acceleration into the short-term retracement zone at 2635.25 to 2615.50.

We could see a technical bounce on the first test of this retracement zone, but if it fails then look for a possible acceleration to the downside. The daily chart shows there is plenty of room to the downside with potential targets lined up at 2584.50, 2559.50 and 2552.00.

A sustained move over 2679.75 will signal the presence of buyers. This could generate the upside momentum needed to challenge 2708.00 then 2718.50. The latter is the trigger point for a possible acceleration into 2749.25.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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