E-mini S&P 500 Index (ES) Futures Technical Analysis – Major Resistance Cluster at 2765.50 – 2786.00

June E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Tuesday. The catalysts behind the rally are early signs of a slowdown in coronavirus cases in U.S. hot spots.

The benchmark index hit a one-month high as governors of New York and New Jersey said their states were showing tentative signs of a “flattening” of the virus outbreak.

At 13:42 GMT, June E-mini S&P 500 Index futures are trading 2724.50, up 80.00 or +3.03%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Monday when buyers took out the last main top at 2635.75. The main trend will change to down on a trade through 2424.75.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2652.50 to 2765.50 is currently being tested.

The main range is 3397.75 to 2174.00. Its retracement zone at 2786.00 to 2930.25 is the next upside target.

Combining the two retracement zones makes 2765.50 to 2786.00 a major resistance cluster.

Daily Technical Forecast

Based on the early price action and the current price at 2724.50, the direction of the June E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 2731.00.

Bullish Scenario

A sustained move over 2731.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into the resistance cluster at 2765.50 to 2786.00. Look for sellers on the first test of this area.

Overcoming 2786.00 could trigger an acceleration to the upside with the next major target a downtrending Gann angle at 2931.00.

Bearish Scenario

A sustained move under 2731.00 will signal the presence of sellers. This could trigger a break into the 50% level at 2652.50. This is a potential trigger point for an acceleration to the downside with the next target angle coming in at 2526.00. This is a major support angle.

Side Notes

It all comes down to trader reaction to 2786.00 to 2930.25. We may find out this week if the rally is being fueled by aggressive buying or short-covering.