E-mini S&P 500 Index (ES) Futures Technical Analysis – May 14, 2019 Forecast

June E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. Traders are reversing earlier weakness on the hope there is still time for the U.S. and China to reach a trade deal. With both economic powerhouses imposing new tariffs, the worst of the latest posturing may be over. Both countries are still negotiating and President Trump says we should know in three or four weeks whether there will be a trade deal.

At 13:33 GMT, June E-mini S&P 500 Index futures are trading 2825.00, up 18.00 or +0.65%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, today’s price action suggests a closing price reversal bottom may be forming. This could trigger a 2 to 3 day counter-trend rally.

A trade through 2799.75 will signal a resumption of the downtrend. This is followed by the next main bottom at 2789.50. This bottom is the trigger point for an even steeper decline.

The main range is 2726.50 to 2961.25. Its retracement zone is 2844.00 to 2816.00. The market is currently trading inside this zone. Trader reaction to this zone will determine the near-term direction of the index.

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 yesterday’s close at 2808.25.

Bullish Scenario

A sustained move over 2808.25 will indicate the presence of buyers. This will put the index in a positon to post a potentially bullish closing price reversal bottom. Clawing through a series of potential resistance levels at 2816.00, 2817.25, 2818.50 and 2824.50 will indicate the buying is getting stronger. If crossed-over, these levels will become support.

The first major objective today is the 50% level at 2844.00. Overtaking this level will indicate the buying is getting stronger. This could trigger a further rally into the uptrending Gann angle at 2859.50. This is another trigger point for an acceleration to the upside with the next target angle coming in at 2889.25.

Bearish Scenario

A sustained move under 2808.25 will signal the presence of sellers. This could lead to a test of today’s intraday low at 2799.75, followed by the main bottom at 2789.50. The latter is the trigger point for an acceleration into the uptrending Gann angle at 2772.50.