E-mini S&P 500 Index (ES) Futures Technical Analysis – Inside Retracement Zone; Strengthens Over 2831.00, Weakens Under 2811.25

Based on the current price at 2824.25, the direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the short-term 50% level at 2811.25 and the short-term Fibonacci level at 2831.00.
James Hyerczyk
E-mini S&P 500 Index

June E-mini S&P 500 Index futures are trading higher shortly after the mid-session. The index is following through to the upside after posting its best move in months on Tuesday. The catalyst behind the market’s strength is increasing speculation that the Federal Reserve will lower its benchmark interest rate sooner than previously expected.

At 18:12 GMT, June E-mini S&P 500 Index futures are trading 2824.25, up 19.25 or +0.70%.

Daily June E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2894.00 will change the main trend to up. A move through 2728.75 will signal a resumption of the downtrend. After two days up from the swing bottom, the market is testing the first of two retracement zones.

These zones will be important indicators of the strength of the market. Since the trend is down, sellers are likely to start re-emerging on a test of these area. They are going to try to form a secondary lower top. The buying will have to be strong enough to overcome the two retracement zones until the main trend changes to up.

The short-term range is 2894.00 to 2728.75. Its retracement zone at 2811.25 to 2831.00 is the first upside target.

The long-term range is 2961.25 to 2728.75. Its retracement zone at 2845.00 to 2872.50 is the next upside target.

Daily Technical Forecast

Based on the current price at 2824.25, the direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the short-term 50% level at 2811.25 and the short-term Fibonacci level at 2831.00.

Bullish Scenario

A sustained move over 2831.00 will indicate the counter-trend buying is getting stronger. This could lead to a test of the downtrending Gann angle at 2842.00, followed closely by the main 50% level at 2845.00.

Bearish Scenario

A sustained move under 2811.25 will signal the return of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into a pair of downtrending Gann angles at 2790.00 and 2769.25.

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