E-mini S&P 500 Index (ES) Futures Technical Analysis – June 7, 2018 Forecast

June E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The early strength is being driven by increased appetite for risk. However, late in the session I expect to see profit-taking as investors begin to square positions ahead of this week-ends G-7 meeting.

At 1230 GMT, June E-mini S&P 500 Index futures are trading 2774.00, up 1.75 or +0.06%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. If the upside momentum continues then we could see a test of the March 13 main top at 2807.25 over the near-term. A break back under the last main top at 2742.75 will be a sign of weakness.

Today’s session begins with the index up 7 days from the last swing bottom. This puts it in the window of time for a potentially bearish close price reversal top. This chart pattern will not mean the trend is changing to down, but it will indicate the selling is greater than the buying at current price levels. If confirmed, the reversal top could trigger the start of a 2 to 3 day correction.

The market is also trading on the strong side of a major retracement zone at 2749.25 to 2707.75. Look for the upside bias to continue on a sustained move over 2749.25. Slipping below this level will also indicate the presence of sellers.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index will be determined by trader reaction to yesterday’s close at 2772.25.

A sustained move over 2772.25 will indicate the presence of buyers. If this generates enough upside momentum, we could see an eventual move into the March 13 main top at 2807.25.

A sustained move under 2772.25 will signal the presence of sellers. This could create the momentum needed to drive the index into the Fibonacci level at 2749.25, followed by the former main top at 2741.75.

Taking out 2772.25 will also put the index in a position to form a potentially bearish closing price reversal top. A close below this level will complete the chart pattern. Therefore, watch the price action and read the order flow at 2741.75 all session.