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E-mini S&P 500 Index (ES) Futures Technical Analysis – April 26, 2017 Forecast

By:
James Hyerczyk
Published: Apr 26, 2017, 12:57 UTC

June E-mini S&P 500 Index futures are trading lower and inside yesterday’s range. The price action indicates investor indecision and impending

E-mini S&P 500 Index (ES) Futures Technical Analysis – April 26, 2017 Forecast

June E-mini S&P 500 Index futures are trading lower and inside yesterday’s range. The price action indicates investor indecision and impending volatility. Traders may not be willing to keep buying at current price levels ahead of today’s major tax reform announcement by the Trump Administration.

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

Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the contract high at 2397.25.

The main range is 2397.25 to 2317.75. Its retracement zone at 2367.00 to 2357.50 is new support.

The index is also up seven days from the last main bottom. This puts it in the window of time for a potentially bearish closing price reversal top. The chart pattern is not likely to lead to a change in trend, but it could signal the start of a 2 to 3 day correction.

Forecast

Based on the current price at 2383.75, the direction of the index today will be determined by two prices.

A sustained move over the downtrending angle at 2387.50 will signal the presence of buyers. This could trigger a surge into 2397.25.

The inability to overcome 2387.50 will signal the presence of sellers. This could drive the market into the steep uptrending angle at 2378.75. If this angle fails then look for a break into the next downtrending angle at 2377.75.

If 2377.75 fails then look for an acceleration into 2366.75.

Look for a bullish tone to develop on a sustained move over 2366.75 and a bearish bias to develop on a sustained move under 2378.75.

Also watch for a higher-high then a close under 2385.00. This will indicate that the selling is greater than the buying at current price levels.

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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