E-mini S&P 500 Index (ES) Futures Technical Analysis – Bullish Over 2718.50, Bearish Under 2602.00

June E-mini S&P 500 Index futures settled slightly lower last week as investors continued to battle with a series of retracement levels.

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart, but buyers are trying to form a secondary higher bottom. This would help shift momentum to the upside.

The minor trend is also down on the weekly chart. A trade through 2718.50 will give the market a slight upside bias.

The main trend will change to up on a trade through 2807.25.

A move through 2552.00 will signal a resumption of the downtrend. It will be reaffirmed on a trade through 2532.50.

The main support is the 2602.00 to 2535.75 retracement zone. This area stopped the selling at 2552.00 and 2532.50.

The main range is 2883.25 to 2532.50. Its 50% level or pivot is 2708.00. This level acted like resistance last week.

The intermediate range is 2807.25 to 2552.00. Its 50% level or pivot is 2679.75.

The short-term range is 2552.00 to 2718.50. Last week, it straddled its 50% level or pivot at 2635.25.

Weekly Swing Chart Technical Forecast

Based on last week’s close at 2671.50 and the price action, the direction of the June E-mini S&P 500 Index this week is likely to be determined by trader reaction to the intermediate pivot at 2679.75.

A sustained move under 2679.75 will indicate the presence of sellers. This could lead to a retest of the short-term pivot at 2635.25. If this level fails then we’re likely to go back into the major retracement zone at 2602.00 to 2535.75.

This is the zone to watch because it is controlling the longer-term direction of the index. If it fails, we could see an acceleration to the downside.

A sustained move over 2679.75 will signal the presence of buyers. This could lead to a surge into 2708.00 then 2718.50.

The daily chart shows there is plenty of room to the upside over 2718.50 with 2807.25 the next major upside target.

Basically, look for an upside bias on a sustained move over 2718.50 and for a downside bias to develop under 2602.00. Trading between these two levels will continue to generate a choppy, two-sided trade.