E-mini S&P 500 Index (ES) Futures Technical Analysis – June 20, 2019 Forecast

September E-mini S&P 500 Index futures are expected to open sharply higher based on the pre-market trade. After responding cautiously on Wednesday to the Federal Reserve announcements, buyers have decisively decided the Fed was dovish.

The price action suggests investors are pricing in an interest rate cut for July. Furthermore, the 10-year Treasury yield breaking below 2% means that investors are willing to take on extra risk in order to get a better return.

At 12:36 GMT, September S&P 500 Index futures are trading 2963.50, up 29.75 or +1.02%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. If the upside momentum continues then look for a test of the contract high at 2967.75. The main trend will change to down on a trade through 2871.50.

Since there is no resistance over 2967.75 then the only pattern that can stop this rally is the closing price reversal top.

The minor trend is also up. A trade through 2889.00 will change the minor trend to down. This will also shift momentum to the downside.

Daily Technical Forecast

The support is being provided by the uptrending Gann angle moving up at a rate of 16 points per day from the 2871.50 main bottom. This angle comes in at 2940.25. Look for a bullish tone on Thursday as long as this angle holds as support.

If 2940.25 fails as support then look for a test of the downtrending Gann angle at 2932.75. This is the trigger point for an acceleration to the downside.

On the upside, we don’t know resistance is over 2967.75 so it doesn’t make sense to try to pick a top. However, a closing price reversal top will indicate the presence of sellers. You won’t get “The Top”, but at least you’ll see where the selling is greater than the buying.