E-mini S&P 500 Index (ES) Futures Technical Analysis – April 24, 2018 Forecast

June E-mini S&P 500 Index futures opened higher. A 4% jump in Caterpillar stock is the catalyst behind the move. The U.S. 10-year Treasury yield hit 3% for the first time since January 2014, but investors may have priced in the move.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2718.50 will signal a resumption of the uptrend.

The minor trend is also up. It will turn down on a move through 2659.75.

The market is currently testing a pair of 50% levels at 2679.50 and 2688.00. These levels seem to be controlling the price action.

The main retracement zone is 2708.00 to 2749.25. This zone is controlling the longer-term direction of the market. It stopped the rally last week 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.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to the 50% level at 2679.50.

A sustained move over 2679.50 will indicate the presence of buyers. This could drive the index into 2689.25. This is a possible trigger point for an acceleration into the main 50% level at 2708.00, followed by the main top at 2718.50.

The main top at 2718.50 is the trigger point for a possible acceleration to the upside with 2749.25 the next major target.

A sustained move under 2679.50 will signal the presence of sellers. This could drive the index back to yesterday’s low at 2657.25. Taking out this level could lead to a test of 2635.25 to 2615.50. Since the main trend is up, buyers could come in on the first test of this zone.