E-mini S&P 500 Index (ES) Futures Technical Analysis – June 18, 2018 Forecast

September E-mini S&P 500 Index futures are expected to open sharply lower based on the pre-market trade. Stocks are being pressured by profit-taking related to expectations of rising U.S. interest rates and increased trade war tensions.

Daily Technical Analysis

The main tend is up according to the daily swing chart, however, momentum has shifted to the downside. A trade through 2796.00 will signal a resumption of the uptrend.

The minor trend is down. It turned down late last week when sellers took out 2772.25. This move shifted momentum to the downside. The next target is the minor bottom at 2755.75. Taking out this level will indicate the selling is getting stronger.

The short-term range is 2755.75 to 2796.00. Its retracement zone at 2771.25 to 2776.00 is new resistance.

The first target is the major Fibonacci level at 2755.25.

The main range is 2679.25 to 2796.00. Its retracement zone at 2737.50 to 2723.75 is the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index the rest of the session will be determined by trader reaction to the minor Fib level at 2771.25 and the downtrending Gann angle at 2772.00.

A sustained move under 2771.25 will indicate the presence of sellers. This could trigger an acceleration into the major Fib at 2775.25. This is a potential trigger point for an acceleration into the support cluster at 2737.75 to 2735.25.

A sustained move over 2772.00 will indicate the presence of buyers. This could lead to a labored rally with targets coming in at 2776.00, 2784.00 and 2790.00. The latter is the last potential resistance angle before the 2796.00 main top.

So far it looks like a normal correction is developing. The key to the longer term picture will be trader reaction to 2737.50 to 2723.75.