E-mini S&P 500 Index (ES) Futures Technical Analysis – April 8, 2019 Forecast

June E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The selling is being driven by concerns over slowing U.S. economic growth and worries that the first quarter earnings season will be the worst in three years. Both factors are encouraging investors to trim positions and take profits ahead of the release of the minutes of the last Fed meeting on Wednesday, and the start of earnings season on Friday.

At 01:16 GMT, June E-mini S&P 500 Index futures are trading 2891.25, down 5.25 or -0.17%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out Friday’s high. However, there wasn’t much of a follow-through to the upside as aggressive counter-trend sellers came in to turn the market lower for the session.

A trade through 2899.50 will signal the return of buyers, but a sustained move under 2896.00 will put the market in a position to post a potentially bearish closing price reversal top. If formed today and confirmed on Tuesday, then look for a possible 2 to 3 day correction.

The short-term range is 2789.50 to 2899.50. If there is a 2 to 3 day correction then look for a pull-back into its retracement zone at 2844.50 to 2831.50.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to 2896.00.

Bullish Scenario

A sustained move over 2896.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a test of 2899.50. Overtaking this level could trigger an acceleration to the upside with the contract high at 2961.25 the next major upside target. This could be reached within 7 to 10 days if the uptrend continues.

Bearish Scenario

A sustained move under 2896.00 will put the index in a position to post a closing price reversal top. Crossing to the weak side of an uptrending Gann angle at 2894.50 will indicate the selling is getting stronger. This could trigger a further break into a pair of uptrending Gann angles at 2879.00 and 2869.50.

Buyers could come in on a test of these angles, but look for an acceleration to the downside if 2869.50 fails as support. This could trigger an acceleration to the downside with the next major target a short-term 50% level at 2844.50.