E-mini S&P 500 Index (ES) Futures Technical Analysis – June 22, 2018 Forecast

September E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. The market is recovering nicely from Thursday’s late session sell-off.

Daily Technical Analysis

The main trend is up according to the daily swing Chart. However, momentum is trending lower. A trade through 2796.00 will change the main trend to up.

The minor trend is down. The weak minor trend and the closing price reversal top from June 13 are responsible for the shift in momentum to down.

The short-term range is 2796.00 to 2735.75. Its 50% level or pivot at 2766.00 is controlling the direction of the index today.

The main range is 2679.25 to 2796.00. Its retracement zone at 2737.50 to 2723.75 is support. This zone stopped the selling on Tuesday at 2735.75.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini S&P 500 Index today is likely to be determined by trader reaction to the short-term 50% level at 2766.00 and the downtrending Gann angle at 2768.00.

A sustained move under 2766.00 will indicate the presence of sellers. This could lead to a retest of the uptrending Gann angle at 2751.25. This angle stopped the selling earlier today, and on Tuesday and Thursday.

If 2766.00 fails as support then look for an acceleration into the support cluster at 2737.50 to 2735.75. Look for a technical bounce on the first test of this zone. If it fails then look out to the downside.

Overcoming and sustaining a rally over 2768.00 will signal the presence of buyers. This could trigger an acceleration to the upside with the first target angle dropping in at 2782.00. The next resistance angle comes in at 2789.00. This is the last potential resistance angle before the 2796.00 main top.

Basically, the index strengthens over 2768.00, and starts to weaken under 2765.75.