E-mini S&P 500 Index (ES) Futures Technical Analysis – Buyers Could Drive Index into 2708.00, Sellers are Looking at 2635.25

The U.S. broad-based benchmark index closed higher last week despite giving up most of its earlier gains the last two days of the week. Last week’s price action helped form a new main bottom, but the rally didn’t take out any significant retracement levels. Additionally, volatility remained at elevated levels.

Weekly June E-mini S&P 500 Index futures settled at 2671.50, up 14.25 or +0.54%.

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart. While a move through 2718.50 will signal an upside bias in momentum, the main trend won’t change to up until 2807.25 is taken out.

A trade through 2552.00 will signal a resumption of the downtrend.

The main range is the contract range. The main bottom is 2321.00. The main top is 2883.25. Its retracement zone is 2602.00. This zone is major support. It stopped sellers at 2532.50 and 2552.00.

The intermediate range is 2883.25 to 2532.50. Its 50% level or pivot is 2708.00. This level is resistance.

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

The new short-term range is 2552.00 to 2718.50. If the selling pressure continues then its 50% level or pivot at 2635.25 will become the primary downside target.

Weekly Swing Chart Technical Forecast

Based on last week’s price action and the close at 2671.50, the direction of the June E-mini S&P 500 Index this week is likely to be determined by trader reaction to the 50% level at 2679.75.

A sustained move under 2679.75 will signal the presence of sellers. This could trigger a break into the next 50% level at 2635.25. We could see a technical bounce on the first test of this level if aggressive counter-trend buyers come into the market.

If 2635.25 is taken out then look for the selling to possibly extend into the major retracement zone at 2602.00 to 2535.75. This includes the main bottoms at 2552.00 and 2532.50.

A sustained move over 2679.75 will indicate the presence of buyers. This could create the upside momentum needed to challenge the 50% level at 2708.00 then last week’s high at 2718.50.

Look for a possible acceleration to the upside if buyers take out 2718.50 with conviction. This could create the upside momentum needed to challenge the main top at 2807.25. The trend will change to up on a move through this top.