E-mini S&P 500 Index (ES) Futures Technical Analysis – June 5, 2018 Forecast

June E-mini S&P 500 Index futures are trading slightly better shortly after the opening. Trading is light and volume slightly below average as investors search for the next catalyst that will drive the market higher.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Monday when buyers took out the previous main top at 2741.75. The next major top comes in at 2807.25.

The index is only up five days from its last main bottom so I don’t anticipate a closing price reversal top.

This morning the index is testing the top end of a major retracement zone. This zone is controlling the longer-term direction of the index. The Fibonacci level of the zone is 2749.25. The lower or 50% level of the zone is 2707.75.

Daily Swing Chart 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 Fibonacci level at 2749.25.

A sustained move over 2749.25 will indicate the presence of buyers. The daily chart indicates there is plenty of room to the upside over this level with the March 13 main top at 2807.25 the next major upside target.

If volume spikes on the move then we could see an acceleration to the upside. If volume is steady then the index is likely to grind higher over the near-term.

A sustained move under 2749.25 will signal the presence of sellers. This will indicate the selling is greater than the buying at current price levels. Although it won’t signal a change in trend, it could trigger an acceleration into the next downside target at 2707.75.

The daily chart indicates that investors should start to watch for big moves since the nearest upside target is way up at 2807.25 and the nearest downside target is way down at 2707.75.