E-mini S&P 500 Index (ES) Futures Technical Analysis – June 6, 2018 Forecast

June E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. Despite concerns over trade frictions, investors are showing increased appetite for risk this week. Of course, this could change if trade negotiations with Canada, Mexico, the European Union and China blow up.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Today’s move through yesterday’s high reaffirmed the uptrend.

Today is the sixth day up from the last swing bottom. Typically, a market makes a reversal top during the 7-10 day period, but it’s never too early to start looking especially when a prolonged move in price is involved.

The major retracement zone is 2707.75 to 2749.25. This zone is controlling the near-term direction of the market. Currently, the market is trading on the strong side of this zone. This is helping to give the market an upside bias.

The daily chart also indicates there is plenty of room to the upside with the March 13 top at 2807.25 the next major upside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index today is likely to be determined by trader reaction to the major Fibonacci level at 2749.25.

A sustained move over 2749.25 will indicate the presence of buyers. There is no resistance until 2807.25.

A sustained move under 2749.25 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the 50% level at 2707.75 the next major downside target.