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E-mini S&P 500 Index (ES) Futures Technical Analysis – June 27, 2019 Forecast

By:
James Hyerczyk
Published: Jun 27, 2019, 13:12 UTC

Based on the early price action, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 2920.25.

E-mini S&P 500 Index

September E-mini S&P 500 index futures are called a little better based on the pre-market trade. The index is trading inside yesterday’s range when tends to indicate investor indecision and impending volatility.

Uncertainty has been driving the price action since Tuesday after Federal Reserve Chair Jerome Powell and St. Louis Fed President James Bullard turned a little dovish about the direction of interest rates. Investors are also worried about U.S.-China trade relations ahead of a meeting between U.S. President Trump and Chinese President Xi Jinping at the G-20 summit in Osaka, Japan on Saturday.

At 12:57 GMT, September E-mini S&P 500 Index futures are trading 2926.00, up 8.25 or +0.27%.

E-mini S&P 500 Index
Daily Sept E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 2969.25 on June 21.

A trade through 2969.25 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down if sellers take out 2871.50.

The short-term range is 2871.50 to 2969.25. Its retracement zone at 2920.25 to 2908.75 is the first downside target. This was tested on Wednesday and earlier today. Since the main trend is up, buyers came in as expected.

The main range is 2732.25 to 2969.25. If the trend changes to down, its retracement zone at 2850.75 to 2822.75 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 2920.25.

Bullish Scenario

A sustained move over 2920.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the downtrending Gann angle at 2969.25. Overtaking this angle should lead to a test of the next downtrending Gann angle at 2953.25. Overcoming this angle will put the index in a position to test the main top at 2969.25.

Bearish Scenario

A sustained move under 2920.25 will signal the presence of sellers. The first two targets are an uptrending Gann angle at 2911.50 and a Fibonacci level at 2908.75.

The daily chart will open up to the downside under 2908.75 with the next target angle coming in at 2876.25.

Overview

Just watch the price action at 2920.25 to 2908.75 today. Look for the upside bias today on a move over 2920.25 and a downside bias under 2908.75.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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