E-mini S&P 500 Index (ES) Futures Technical Analysis – June 5, 2017 Forecast

June E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The inside move suggests investor indecision and impending volatility.

Technical Analysis

The main trend is up according to the daily swing chart. A trade 2439.75 will signal a resumption of the uptrend. The index is not in a position to turn the main trend to down, but a higher-high, lower-close will form a potentially bearish closing price reversal top.

Forecast

Based on the current price at 2436.50 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the steep uptrending angle at 2432.50.

A sustained move over 2432.50 will indicate the presence of buyers. This could lead to a test of Friday’s high at 2439.75. This is the trigger point for further upside action.

Crossing to the weak side of the steep uptrending angle at 2432.50 will signal the presence of sellers. If volume increases on the move, we could see a steep break or a near-term sell-off with potential targets at 2402.50 and 2388.50.

Watch the price action and read the order flow at 2432.50 all session. Trader reaction to this angle will tell us if the buyers or sellers are in control.