E-mini S&P 500 Index (ES) Futures Technical Analysis – Forming Closing Price Reversal Top

June E-mini S&P 500 Index futures are edging lower on Monday shortly after the cash market opening, the volume is extremely light with some traders extending the Easter holiday one more day. Traders are showing little response to the historic oil production cut reached by OPEC over the week-end. Instead, the focus seems to have shifted back to concerns over the coronavirus outlook.

At 14:10 GMT, June E-mini S&P 500 Index futures are trading 2750.00, down 29.75 or -1.07%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out Friday’s high. A trade through 2424.75 will change the main trend to down.

The minor trend is also up. A trade through 2620.75 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 3397.75 to 2174.00. Its retracement zone at 2786.00 to 2930.25 is acting like resistance.

The intermediate range is 3131.00 to 2174.00. The index is currently trading inside its trading range at 2652.50 to 2765.50. A close over this zone will turn it into support. Right now, it looks like a pivot zone.

Daily Swing Chart Technical Forecast

Combining the two retracement zones creates a price cluster at 2765.50 to 2786.00. This is the key area controlling the index.

Look for a bullish tone to develop on a sustained move over 2786.00, and a weaker tone on a sustained move under 2765.50.

The index is also in a position to form a potentially bearish closing price reversal top. A close under 2779.75 will form this chart pattern.

A closing price reversal top won’t change the trend to down, but it could trigger the start of a 2 to 3 day correction.

Look for a bearish tone all day as long as the index stays under 2779.75.