E-mini S&P 500 Index (ES) Futures Technical Analysis – May 16, 2018 Forecast

Based on yesterday’s trade and the early price action, the direction of the index today is likely to be determined by trader reaction to the main 50% level at 2707.75.
James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

June E-mini S&P 500 Index futures are trading flat shortly before the cash market opening. Yesterday’s steep sell-off was fueled by a sharp rise in U.S. Treasury yields. Today, yields are stable. There have been some geopolitical concerns raised over North Korea that could blow up into something major if the rogue nation decides to pullout of the meeting with President Trump scheduled for June.

E-mini S&P 500 Index
Daily June E-mini S&P 500 Index

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.

A new minor top was formed at 2741.25 on Tuesday.

The main retracement zone is 2707.75 to 2749.25. This zone is acting like resistance. It is also 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 yesterday’s trade and the early price action, the direction of the index today is likely to be determined by trader reaction to the main 50% level at 2707.75.

A sustained move over 2707.75 will indicate the presence of buyers. If this move generates enough upside momentum, buyers may take a run at 2741.25 to 2749.25.

The trigger point for a possible acceleration to the upside is the Fibonacci level at 2749.25.

A sustained move under 2707.75 will signal the presence of sellers. Taking out yesterday’s low at 2700.50 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with 2666.25 the first downside target.

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