E-mini S&P 500 Index (ES) Futures Technical Analysis – April 3, 2018 Forecast

June E-mini S&P 500 Index futures are trading higher on Wednesday following a report that said the U.S. and China are closer to reaching a trade agreement. The market is now within striking distance of its all-time high. The announcement of a trade deal is likely to spike prices higher, however, you have to be aware of a potential “buy the rumor, sell the fact situation” since most of the news has already been baked into the market.

At 05:46 GMT, June E-mini S&P 500 Index futures are trading 2879.25, up 12.25 or +0.43%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was confirmed earlier in the session when buyers took out yesterday’s high. The next major upside target is the September 21, 2018 main top at 2961.25. The main trend is safe at this time. A trade through 2789.50 will change the main trend to down.

The index is up seven days from its last main bottom so it begins the session inside the window of time for a closing price reversal top.

Daily Technical Forecast

If the upside momentum continues then look for buyers to take a run at an uptrending Gann angle at 2901.50. We could see a technical bounce on the first test of this angle. And the market could “walk up” this angle for several days. However, overcoming this angle will put the index in a bullish position that could trigger an acceleration to the upside.

If momentum shifts to the downside with the formation of an intraday closing price reversal top then look for a possible break into the next uptrending Gann angle at 2845.50. Since the main trend is up, buyers are likely to come in on a test of this angle.

Essentially, investors have to choose whether to buy strength or play for a pullback into support.