E-mini S&P 500 Index (ES) Futures Technical Analysis – Low Volume Could Create Issues for Momentum Traders

June E-mini S&P 500 Index futures are trading lower shortly before the cash market opening on Monday. The price action suggests investors are looking for direction following Friday’s late session surge that propelled the benchmark index to within striking distance of its record high.

At 09:36 GMT, June E-mini S&P 500 Index futures are at 3942.25, down 22.50 or -0.57%.

Some traders are expecting a volatile trade this week due to the ongoing quarterly rebalancing among pension funds and other major players. They expect some money managers to make major adjustments in their portfolios due to the recent surge in Treasury yields.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3978.50 will signal a resumption of the uptrend. The main trend changes to down on a move through 3710.50.

Taking out 3968.00 will make 3843.25 a new main bottom.

The minor trend is up. A trade through 3968.00 will signal a resumption of the uptrend. The minor trend will change to down on a move through 3843.25.

The minor range is 3978.50 to 3843.25. Its 50% level or pivot at 3910.75 is the nearest support.

The short-term range is 3710.50 to 3978.50. Its 50% level at 3844.50 is another support level. This level stopped the selling at 3843.25 last week.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to 3968.00.

Bullish Scenario

A sustained move over 3968.00 will indicate the presence of buyers. If this can create enough upside momentum then look for a surge into 3978.50.

Bearish Scenario

A sustained move under 3968.00 will signal the presence of sellers. If this move generates enough downside momentum then look for a possible pullback into 3910.75. Since the main trend is up, buyers are likely to come in on a test of this level.

If 3910.75 fails then look for the start of an acceleration to the downside with the next target 3844.50 to 3843.25.

Side Notes

Volume could be a problem today so be careful buying strength and selling weakness.