E-mini S&P 500 Index (ES) Futures Technical Analysis – May 15, 2018 Forecast

June E-mini S&P 500 Index futures are trading lower shortly after the opening. The selling started in the pre-market session and continued when the cash market opened.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2741.25 will signal a resumption of the uptrend.

We didn’t see the closing price reversal top on Monday, but we were inside the 7 to 10 day period which tends to lead to short-term corrections.

The market is currently trading inside a key retracement zone at 2707.75 to 2749.25. This zone is controlling the longer-term direction of the market.

The short-term range is 2591.25 to 2741.25. Its retracement zone at 2666.25 to 2648.50 is the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the 50% level at 2707.75.

A sustained move over 2707.75 will indicate the presence of buyers. If this move generates enough upside momentum, we could see a retest of 2741.25, followed by the Fibonacci level at 2749.25.

Taking out 2707.75 and sustaining the break could trigger an acceleration to the downside. The daily chart shows there is plenty of room to the downside with the next major target coming in at 2666.25 to 2648.50. We could get there within 2 to 3 days.