E-mini S&P 500 Index (ES) Futures Technical Analysis – May 18, 2018 Forecast

June E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The index is trading inside yesterday’s range and Monday’s and Tuesday’s range. This is unusual. This type of pattern tends to indicate investor indecision and impending volatility to start getting ready for the return of volatility with an expanded range likely.

Daily 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 change momentum to the downside.

The short-term range is 2591.25 to 2741.25. If the selling pressure increases then its retracement zone at 2666.25 to 2648.50 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the June E-mini S&P 500 Index will likely be determined by trader reaction to the downtrending Gann angle at 2713.25.

Holding above 2713.25 will indicate the presence of buyers. If this generates enough upside momentum, we could see a move into 2741.25. This is a possible trigger point for an acceleration into a long-term downtrending Gann angle at 2760.25.

A sustained move under 2713.25 2ill signal the presence of sellers. This could trigger a spike into 2700.50. If this price fails then look for the selling to extend into the steep uptrending Gann angle at 2679.25.

The Gann angle at 2679.25 is the last potential support angle before the short-term retracement zone at 2666.25 to 2648.50.