E-mini S&P 500 Index (ES) Futures Technical Analysis – Key Support Zone 2785.75 to 2765.50

June E-mini S&P 500 Index futures are trading higher on Tuesday shortly after the cash market opening. The market is being underpinned by a more optimistic view about the coronavirus, but some buyers are still a little tentative ahead of the start of corporate earnings season. Early in the session, the benchmark index is being led higher by 2% rallies in technology, real estate and utilities.

At 14:37 GMT, June E-mini S&P 500 Index futures are trading 2824.25, up 65.00 or +0.95%.

“Financial markets have started to take a more positive view of the outlook,” said Jan Hatzius, chief economist at Goldman Sachs, in a note. “The initial improvement was mostly policy-driven, but the greater optimism of the past week seems to be at least partly related to the virus itself.”

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend resumed earlier today after taking out yesterday’s high and negating the closing price reversal top. The next main top target is 3131.00.

On the downside, the main trend changes to down on a move through the last main bottom at 2424.75.

The minor trend is also up. A trade through 2620.75 will change the minor trend to down. This will shift momentum to the downside.

The main range is 3397.75 to 2174.00. Its retracement zone at 2785.75 to 2930.25 is currently being tested. Trader reaction to this zone will determine the longer-term direction of the index.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2765.50 to 2652.50 is new support.

Daily Swing Chart Technical Forecast

Combining the two retracement zones creates a major price cluster at 2785.75 to 2765.50. Trader reaction to this zone will set the tone of the market on Tuesday.

Holding above 2785.75 will give the June E-mini S&P 500 Index a strong upside bias. This could lead to an eventual test of the major Fibonacci level at 2930.25.

A sustained move under 2765.50 will signal the return of sellers. This could trigger a break into the 50% level at 2652.50.