E-mini S&P 500 Index (ES) Futures Technical Analysis – May 23, 2018 Forecast

June E-mini S&P 500 Index futures are called lower based on the pre-market trade. Traders are reacting to President Trump’s disappointment in the trade negotiations between the United States and China. Investors fear a possible trade war if the negotiations break down. Furthermore, Trump also said the talks with North Korea, scheduled for June in Singapore, may not happen.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has shifted to the downside.

A trade through 2741.75 will signal a resumption of the uptrend. A move through 2591.25 changes the main trend to down.

The minor trend turned down earlier today when sellers took out the swing bottom at 2708.75. This move shifted momentum to the downside. A trade through 2700.50 will reaffirm the change in momentum.

The main retracement zone is 2707.75 to 2749.25. This zone is major resistance. It is also controlling the near-term direction of the index.

The minor range is 2700.50 to 2741.75. Its 50% level or pivot is 2721.25. Trading below this level is further confirmation of the shift in momentum.

The short-term range is 2591.25 to 2741.25. If the downside pressure continues, sellers could drive the index into its retracement zone at 2666.50 to 2648.75.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index the rest of the session is likely to be determined by trader reaction to the main 50% level at 2707.75.

A sustained move under 2707.75 will indicate the presence of sellers. This could drive the index through the minor bottom at 2700.50. This is the potential trigger point for an acceleration to the downside with 2666.50 the first major downside target.

A sustained move over 2707.75 will signal the presence of buyers. This could fuel a retest of the pivot at 2721.25. Overtaking this level will mean the buying is getting stronger with upside targets coming in at 2741.75 and 2749.25.