E-mini S&P 500 Index (ES) Futures Technical Analysis – May 21, 2018 Forecast

June E-mini S&P 500 Index futures are called higher based on the pre-market trade. Investors are reacting positively to the outcome of the trade talks between the United States and China.

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 trade through 2708.75 will change the minor trend to down. A move through 2700.50 will shift momentum to the downside.

The index is trading inside a major retracement zone bounded by 2707.75 and 2749.25. This zone is controlling the longer-term direction of the index.

The short-term range is 2591.25 to 2741.25. If 2700.50 fails as support then we could see a move into its retracement zone at 2666.25 to 2648.50.

Daily Swing Chart Technical Forecast

The market is currently trading with an upside bias. Therefore, the direction of the index the rest of the session is likely to be determined by trader reaction to last week’s high at 2741.25.

A trade through 2741.25 will indicate the presence of buyers. This could trigger a quick move into the major Fibonacci level at 2749.25. This is the trigger point for a possible acceleration to the upside with 2807.25 the next likely upside target.

The inability to overcome 2741.25 will signal the presence of sellers. If this generates enough downside momentum, we could see a retest of the cluster of numbers at 2708.75, 2707.75 and 2700.50.

The trigger point for an acceleration to the downside is 2700.50.