E-mini S&P 500 Index (ES) Futures Technical Analysis – May 20, 2019 Forecast

The benchmark S&P 500 Index is expected to open lower based on the pre-market trade. Sellers have taken control after early session buyers disappeared on fallout from U.S. “sanctions’ on Huawei. Late last week, President Trump’s administration added Hauwei to a list that required U.S. companies get a license to do business with the Chinese company.

At 12:44 GMT, June E-mini S&P 500 Index futures are trading 2839.50, down 22.50 or -0.78%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 2799.75 will signal a resumption of the downtrend. The main trend will change to up on a move through 2961.25. This is highly unlikely today due to strong resistance below this level.

The minor trend is up. It changed to up last week when buyers took out the previous minor top at 2893.00. This move shifted momentum to the upside although there was very little follow-through after the trend changed.

The main range is 2726.50 to 2961.25. Its retracement zone at 2844.00 to 2816.00 is controlling the longer-term direction of the index. This zone is being tested during the pre-market session.

The short-term range is 2961.25 to 2799.75. Its retracement zone at 2880.50 to 2899.50 stopped the rally last week. Look for lower markets if 2894.00 becomes a secondary lower top.

Daily Technical Forecast

Based on the early trade and the last price at 2839.50, the direction of the June E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 2844.00.

Bearish Scenario

A sustained move under 2844.00 will indicate the presence of sellers. This could lead to a test of the uptrending Gann angle at 2826.50. This is followed by the Fibonacci level at 2816.00.

Taking out 2816.00 will indicate the selling is getting stronger. If this occurs then look for a move into the first main bottom at 2799.75. Taking out this level will signal a resumption of the downtrend with the next target the second main bottom at 2789.00.

The selling pressure could increase if 2789.00 fails as support with the next target angle coming in at 2776.50. This is the last potential support angle before the 2726.50 main bottom.

Bullish Scenario

A sustained move over 2844.00 will signal the presence of buyers. This could trigger a rally into a downtrending Gann angle at 2857.25. Sellers could come in on the first test of this angle. Overtaking it could create the upside momentum needed to challenge the major 50% level at 2880.50.