E-mini S&P 500 Index (ES) Futures Technical Analysis – May 2, 2017 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 which indicates investor indecision and impending volatility. There was no follow-through to the upside following yesterday’s strong rebound rally.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2394.75 will signal a resumption of the uptrend with the next target the all-time high at 2397.25. This move will also make 2377.00 a new main bottom.

A trade though 2377.00 will indicate a shift in momentum to the downside.

The main range is 2322.75 to 2394.75. If there is a sell-off then its retracement zone at 2358.75 to 2350.25 will become the primary downside target.

The short-term range is 2394.75 to 2377.00. Its 50% level or pivot is 2386.00.

Forecast

Based on the current price at 2385.50, the direction of the index today is likely to be determined by trader reaction to the short-term 50% level at 2386.00.

A sustained move over 2386.00 will indicate the presence of buyers. This could fuel a labored rally because of potential resistance angles at 2386.75, 2390.75 and 2392.75. The latter is the last potential resistance angle before the 2394.75 main top.

A sustained move under 2386.00 will signal the presence of sellers. The daily chart is open to the downside with the first target angle 2378.75.

Crossing to the weak side of the angle at 2378.75 will put the index in a bearish position. This could create enough downside momentum to trigger an acceleration into the major uptrending angle at 2366.75.

Watch the price action and read the order flow at 2386.00 all session. Trader reaction to this level will tell us if the buying is getting stronger or if sellers have returned.