E-mini S&P 500 Index (ES) Futures Technical Analysis – June 26, 2018 Forecast

September E-mini S&P 500 Index futures are trading slightly higher shortly before the cash market opening. The market is currently trading inside Monday’s range which suggests investor indecision and impending volatility. This assessment is being further supported by the straddling of yesterday’s close.

Investors are trying to decide whether the current correction has been enough at alleviate concerns over trade, or if there is more selling pressure to come.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 2679.25 will change the main trend to down.

The minor trend is down. A move through 2700.50 will indicate the selling is getting stronger. The minor trend will change to up on a move through 2785.25.

The index is also being controlled by a series of retracement levels.

The main range is 2595.75 to 2796.00. Its retracement zone at 2695.75 to 2672.25 is the primary downside target. Inside this zone is the last main bottom at 2679.25. Since the main trend is up, buyers may show up on a test of this area. If it fails then prices could plunge.

The short-term range is 2679.25 to 2796.00. Its retracement zone at 2724.00 to 2737.75 is early resistance.

The longer-term retracement zone controlling the bigger picture is 2713.75 to 2755.25.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to the major 50% level at 2713.75.

A sustained move over 2713.75 will indicate the presence of buyers. This could drive the index into 2724.00. This price is another stair-step in the recovery process. Overcoming this level will indicate the buying is getting stronger with 2737.75 the next target.

The index begins to open up to the upside over 2737.75 with the next target level coming in at 2755.25. Watch for a potential acceleration to the upside over this level.

A sustained move under 2713.75 will signal the presence of sellers. If this price is taken out by real sellers then look for a further break into 2685.75. The selling will expand under this level with targets coming in at 2679.25 and 2672.25.

The selling could get rally strong if 2672.25 fails as support because the next major target doesn’t come into play until 2595.75.