E-mini S&P 500 Index (ES) Futures Technical Analysis – May 17, 2018 Forecast

June E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The price action is being driven by rising U.S. Treasury yields, a slew of U.S. economic data and new earnings results.

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 move through 2700.50 will be a sign of weakness.

The main retracement zone is 2707.75 to 2749.25. The market has been trading inside this zone all week. Trader reaction to this zone will determine the longer-term trend of the index.

The short-term range is 2591.25 to 2741.25. If there is a sell-off then its retracement zone at 2666.25 to 2648.50 will become the primary downside target.

Daily Swing Chart Technical Forecast

Based on the pre-market trade and the price action earlier in the week, the direction of the June E-mini S&P 500 Index 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, we could see a retest of the high for the week at 2741.25 and the main Fibonacci level at 2749.25. The latter is the trigger point for an acceleration to the upside. The daily chart shows there is plenty of room to run with 2807.25 the next major upside target.

A sustained move under 2707.75 will signal the presence of sellers. This could trigger a quick break into this week’s low at 2700.50. This price is a potential trigger point for an acceleration into the short-term retracement zone at 2666.25 to 2648.50.