E-mini S&P 500 Index (ES) Futures Technical Analysis – April 5, 2019 Forecast

June E-mini S&P 500 Index futures are expected to open higher on Friday based on the early morning session.  The catalysts behind the rally are positive developments over a U.S.-China trade deal, and a better-than-expected U.S. Non-Farm Payrolls report.

According to the U.S. Bureau of Labor Statistics, the economy added 196,000 jobs in March, exceeding trader estimates of 175,000. The unemployment rate also held steady at 3.8 percent as expected. Wage gains weakened slightly, increasing just 0.14 percent for the month and 3.2 percent year over year. Traders were looking for a monthly pace of 3.4 percent.

The strong report helped ease fears of a recession, offering encouragement for bullish investors.

At 13:08 GMT, June E-mini S&P 500 Index futures are trading 2889.50, up 6.75 or +0.23%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the September 21, 2018 main top at 2961.25. The nearest main bottom comes in at 2789.50. The market isn’t close to changing the main trend to down, but it is inside the window of time to form a potentially bearish closing price reversal top.

Daily Technical Forecast

If the upside momentum continues, then look for buyers to take a run at the uptrending Gann angle at 2933.50. Overtaking this angle will put the market in a bullish position with 2961.25 the next major upside target.

If momentum shifts to the downside then the uptrending Gann angle at 2861.50 will become the primary downside target. Watch for a technical bounce on the first test of this angle. If it fails then the selling should extend into the next uptrending Gann angle at 2825.50.

It’s not resistance or support we’re watching today, but rather the momentum.