E-mini S&P 500 Index (ES) Futures Technical Analysis – June 1, 2018

June E-mini S&P 500 Index futures are trading higher shortly before the cash market opening and a little after the release of the better than expected U.S. Non-Farm Payrolls report.

Payrolls came in at 223K, beating the 189K forecast. The unemployment rate fell to 3.8%. The closely watched Average Hourly Earnings rose 0.3%. Traders were looking for a reading of 0.2%.

Treasury yields rose on the news, helping to turnaround the U.S. Dollar.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2741.75 will signal a resumption of the uptrend.

The minor trend is down. This is why the market has been trading mostly sideways to lower since the formation of the closing price reversal top at 2741.75 on May 22.

The short-term range is 2741.75 to 2675.00. Its 50% level or pivot is 2708.00. This level is acting like support.

The main range is 2591.25 to 2741.75. Its retracement zone at 2663.50 to 2649.00 is the primary downside target.

Daily Technical Forecast

Based on the early trade, 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 the downtrending Gann angle at 2713.75.

A sustained move over 2713.75 will indicate the presence of buyers. This could lead to a test of a pair of downtrending Gann angles at 2727.75 and 2734.75. The latter is the last potential resistance angle before the 2741.75 main top.

Taking out 2741.75 could trigger an acceleration into a long-term downtrending Gann angle at 2751.00.

A failure to hold above 2713.75will signal the presence of sellers. Taking out the pivot at 2708.25 could trigger an acceleration to the downside with the next two targets coming in at 2675.00 and 2671.25.