E-mini S&P 500 Index (ES) Futures Technical Analysis – May 24, 2017 Forecast

June E-mini S&P 500 Index futures are trading slightly better shortly before the cash market opening. Traders are reacting to mixed earnings reports and a flat crude oil market. The primary focus for traders will be the Fed Meeting Minutes which is scheduled for release at 1800 GMT.

Technical Analysis

The main trend is down according to the daily swing chart. The trend will turn up on a trade through the last main top at 2404.50.

Forecast

Based on the current price at 2397.75, the direction of the market is likely to be determined by trader reaction to the downtrending angle at 2398.50.

A sustained move over 2398.50 will signal the presence of buyers. This could trigger a further rally into the next downtrending angle at 2401.50. This is the last potential resistance angle before the 2404.50 main top.

Taking out 2404.50 will not only change the trend to up, but it could also trigger an acceleration to the upside with the next target angle coming in at 2408.50. Crossing to the strong side of this angle will put the index in an extremely strong position.

A sustained move under 2398.50 will indicate the presence of sellers. The first downside target is 2392.50. If this angle fails as support then look for a possible acceleration to the downside with the next target angles coming in at 2380.50 and 2376.50.

Watch the price action and read the order flow at 2398.50. Trader reaction to this angle will tell us if the buyers are in control or if the sellers are retaking control.