E-mini S&P 500 Index (ES) Futures Technical Analysis – April 23, 2019 Forecast

The benchmark E-mini S&P 500 Index is expected to open higher based on the pre-market trade. The rally is being fueled by increased demand for higher risk assets due to better-than-expected earnings results from major corporations such as Coca-Cola and United Technologies. Prices could continue to rise throughout the session if momentum picks up as we approach last week’s high and in anticipation of an eventual move to an all-time high.

At 13:15 GMT, June E-mini S&P 500 Index futures are trading 2914.75, up 2.25 or +0.08%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is weak due to last week’s closing price reversal top at 2923.50. A trade through this level will negate the chart pattern and signal a resumption of the uptrend. The main trend will change to down on a trade through 2889.50.

Daily Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index futures contract is likely to be determined by trader reaction to the downtrending Gann angle at 2911.50.

Bullish Scenario

A sustained move over 2911.50 will indicate the presence of buyers. This should lead to a test of the next downtrending Gann angle at 2917.50. This is the last potential resistance angle before the 2923.50 main top.

Taking out 2923.50 will indicate the buying is getting stronger. This is a potential trigger point for an acceleration to the upside with the next major target the all-time high at 2961.25.

Bearish Scenario

The inability to overcome and sustain a move over 2917.50 will be the first sign of sellers. Taking out 2911.50 will indicate the selling is getting stronger. This could lead to a test of a short-term uptrending Gann angle at 2905.50. This is followed by a test of 2899.50 to 2897.50.

Crossing to the weak side of 2897.50 will put the index in a position to accelerate into the main bottom at 2889.50. This is the trigger point for an even steeper decline into a major uptrending Gann angle at 2869.50.

Essentially, look for the upside bias to continue on a sustained move over 2917.50 and for a downside bias to develop on a sustained move under 2911.50.