E-mini S&P 500 Index (ES) Futures Technical Analysis – June 3, 2019 Forecast

June E-mini S&P 500 Index futures are trading lower shortly before the cash market opening, but clawing back most of its earlier losses. A dip in Treasury yields is helping to underpin stock prices by easing tensions over a U.S. economic slowdown.

Traders could also be squaring positions ahead of today’s major ISM Manufacturing PMI report. This report could set the tone for the day. Traders are looking for a reading of 53.0. A better-than-expected number could be bullish for stocks. Price could spike lower if the number misses the forecast.

At 13:10 GMT, June E-mini S&P 500 Index futures are trading 2749.25, down 3.25 or -0.12%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2726.50 will reaffirm the downtrend. This could lead to an eventual test of the next two main bottoms at 2686.00 and 2618.00.

The main trend will change to up on a trade through 2894.00. However, due to the prolonged move down in terms of price and time, traders should watch for a potentially bullish closing price reversal bottom.

The main range is 2319.25 to 2961.25. Its retracement zone at 2640.25 to 2564.50 is a major value area.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 index is likely to be determined by trader reaction to the long-term uptrending Gann angle at 2751.25.

Bullish Scenario

A sustained move over 2751.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential rally into a downtrending Gann angle at 2785.25. Look for sellers on the first test of this angle. If buyers can take it out then look for the rally to extend into the next downtrending Gann angle at 2806.00.

Bearish Scenario

A sustained move under 2751.25 will signal the presence of sellers. The daily chart is wide open to the downside so we could see an acceleration into 2726.50. This is another trigger point for a move into the next main bottom at 2686.00.