E-mini S&P 500 Index (ES) Futures Technical Analysis – April 25, 2017 Forecast

June E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The market was under pressure early in the session on concerns over North Korea, but investors came in to buy the early weakness. However, this doesn’t mean the issue has gone away, it probably just means investors are paying more attention to earnings.

Technical Analysis

The main trend is up according to the daily swing chart. It turned up on Monday when buyers took out 2375.00. The next upside target is the main top at 2388.75, followed by the contract high at 2397.25.

The main range is 2397.25 to 2317.75. Its retracement zone is 2357.50 to 2367.00. This zone is now support. Holding above this zone will help maintain the upside bias.

Forecast

Based on the current price at 2376.75, the direction of the index today is likely to be determined by trader reaction to the downtrending angle at 2378.25.

A sustained move over 2378.25 will indicate the presence of buyers. This could generate the upside momentum needed to overtake the next downtrending angle at 2378.25 and challenge the main top at 2388.75. This is the last potential resistance before 2397.25.

The inability to sustain a move over 2378.25 will signal the presence of sellers. This could drive the index into a steep uptrending angle at 2370.75. This is followed closely by a Fib level at 2367.00.

If 2367.00 fails as support then look for an acceleration to the downside with 2357.50 the next target.

Look for a bullish tone on a sustained move over 2378.25 and a bearish bias on a sustained move under