E-mini S&P 500 Index (ES) Futures Technical Analysis – June 6, 2019 ForecastBased 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 steep uptrending Gann angle at 2824.25.
June E-mini S&P 500 Index futures are trading higher on Thursday, helped by strong hints of a rate cut by the U.S. Federal Reserve and the promise of fresh stimulus from the European Central Bank. Free money makes the market go up, who cares about the trade disputes and weakening global economy.
At 12:57 GMT, June E-mini S&P 500 Index futures are trading 2829.75, up 2.00 or +0.08%.
If there is any lightening up on the long side today, it will likely be fueled by position-squaring and profit-taking ahead of Friday’s U.S. Non-Farm Payrolls report. Earlier today, the U.S. Trade Balance came in as expected at -50.8 and weekly jobless claims were steady at 218K. Throughout the session investors will be looking for any new developments on trade relations between the United States and China and Mexico.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 2894.00 will change the main trend to up. A move through 2728.75 will signal a resumption of the downtrend.
The index has hit the critical area on the chart. It’s trading inside a pair of 50% to 61.8% retracement zones. Since the main trend is down, sellers will be trying to stop the rally inside this zone in an effort to form a potentially bearish secondary lower top.
The short-term range is 2894.00 to 2728.75. Its retracement zone is 2811.25 to 2831.00.
The main range is 2961.25 to 2728.75. Its retracement zone is 2845.00 to 2872.50.
Combining these two zone creates another potential resistance zone at 2831.00 to 2845.00. Trader reaction to this area is likely to set the tone for the rest of the session.
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 steep uptrending Gann angle at 2824.25.
A sustained move over 2824.25 will indicate the presence of buyers. Overcoming 2831.00, 2838.00 and 2845.00 will indicate the buying is getting stronger. The latter is the trigger point for an acceleration into the downtrending Gann angle at 2861.25.
A sustained move under 2824.75 will signal the presence of sellers. The first target is the 50% level at 2811.25. This is the trigger point for an acceleration to the downside with the next major target angle coming in at 2776.25.