E-mini S&P 500 Index (ES) Futures Technical Analysis – June 12, 2019 Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to the main Fibonacci level at 2872.50.
James Hyerczyk
E-mini S&P 500 Index

June E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. President Trump’s tough talk on tariffs against China are being blamed for the weakness. We could also be looking at early position-squaring ahead of next week’s Fed decisions. Traders are showing little reaction to today’s consumer inflation report, which came in weak enough to increase the odds of a Fed rate cut later in the year.

At 13:37 GMT, June E-mini S&P 500 Index futures are trading 2885.50, down 1.25 or -0.06%.

Daily June E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside after yesterday’s closing price reversal top at 2911.50 and today’s confirmation of the chart pattern.

A trade through 2911.50 will negate the chart pattern and signal a resumption of the uptrend. We don’t expect to see a change in trend, but we could see a 2 to 3 day correction.

The main range is 2961.25 to 2728.75. Its retracement zone at 2872.50 to 2845.00 is controlling the near-term direction of the index. Consider this area support.

The short-term range is 2728.75 to 2911.50. If the main support zone fails then look for the selling to possibly extend into the short-term retracement zone at 2820.00 to 2798.50.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to the main Fibonacci level at 2872.50.

Bullish Scenario

A sustained move over 2872.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into a long-term downtrending Gann angle at 2903.25. Overtaking this angle will likely lead to a test of 2911.50.

Bearish Scenario

A sustained move under 2872.50 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target area a potential support cluster at 2845.00, 2840.75 and 2832.25.

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