E-mini S&P 500 Index (ES) Futures Technical Analysis – May 22, 2018 Forecast

The momentum from the easing of tensions over trade between the United States and China is helping to support June E-mini S&P 500 Index futures for a second day on Tuesday. Based on the pre-market trade, we’re looking for slightly better regular session opening.

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.

The minor trend is also up. A trade through 2708.75 will change the minor trend to down. A trade through the next minor bottom at 2700.50 will indicate the selling is getting stronger.

The main retracement zone is 2707.75 to 2749.25. This zone is controlling the longer-term direction of the index. The market is currently trading inside this zone.

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

The extremely short-term range is 2741.25 to 2700.50. Its 50% level or pivot is 2720.75. This level is controlling the direction today. Holding above it will give the index an upside bias.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the top at 2741.25.

Taking out 2741.25 will indicate the presence of buyers. This should lead to a quick test of the major Fib level at 2749.25. This level is the trigger point for an acceleration to the upside. The next major upside target comes in at 2807.25.

A sustained move under 2741.25 will signal the presence of sellers. This could drive the index into the pivot at 2720.75. We could see a technical bounce on the first test of this level. If it fails then look for the selling to extend into a series of levels at 2708.75, 2707.75 and 2700.50. The latter is the trigger point for an acceleration into 2666.25.