E-mini S&P 500 Index (ES) Futures Technical Analysis – June 27, 2018 Forecast

If the price action during the pre-market session is any indication, today could be a volatility day for stock traders. Earlier in the session, the benchmark index broke sharply before recovering almost all of its losses about 90 minutes before the cash market opening.

At 1203 GMT, September E-mini S&P 500 Index futures are trading 2725.75, up 2.75 or +0.13%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 2700.50 will indicate the downside momentum is getting stronger. A move through 2679.25 will change the main trend to down.

On the downside, the support is a major retracement zone at 2695.75 to 2672.25.

On the upside, the first resistance zone is 2724.00 to 2737.50. This is followed by a 50% level at 2748.25.

Daily Technical Forecast

Based on the current price at 2726.50, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to a Fib level at 2724.00 and an uptrending Gann angle at 2721.25.

A sustained move over 2724.00 will indicate the presence of buyers. If this generates enough upside momentum, we could see rallies into a pair of 50% levels at 2737.50 and 2748.25, followed closely be a downtrending Gann angle at 2756.00.

The Gann angle at 2756.00 is important because it has been guiding the market lower since the formation of the main top at 2796.00 on June 13. Overtaking this angle could trigger an acceleration to the upside.

A sustained move under 2721.25 will signal that sellers are in control. Crossing to the weak side of a downtrending Gann angle at 2716.00 will indicate the selling is getting stronger. This could trigger a break into this week’s low at 2700.50 and an uptrending Gann angle at 2700.25.

A failure to hold 2700.25 could drive the index into a major retracement zone at 2695.75 to 2672.25. Inside this zone is an uptrending Gann angle at 2689.75. This is the last potential support angle before the 2679.25 main bottom.

Basically, look for an upside bias on a sustained move over 2724.00 and for a downside bias on a sustained move under 2716.00.