E-mini S&P 500 Index (ES) Futures Technical Analysis – May 24, 2018 Forecast

June E-mini S&P 500 Index futures are called lower based on the pre-market trade. Pressuring the index are weaker crude oil prices and renewed U.S. trade tensions. Helping to underpin the index is yesterday’s dovish Fed minutes which suggest the central bank will continue to raise rates gradually.

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 2740.50 and 2700.50 will indicate the selling pressure is getting stronger. This will reaffirm the shift in momentum to the downside.

The short-term range is 2700.50 to 2741.75. Its 50% level or pivot at 2721.00 is controlling the direction of the index today.

The index is also trading inside a major retracement zone, bounded by the 50% level at 2707.75 and the 61.8% level at 2749.25. This zone is controlling the longer-term direction of the index.

The main range is 2591.25 to 2741.75. If the market takes out 2700.50 then its retracement zone at 2666.50 to 2648.75 will become the primary downside target.

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 short-term pivot at 2721.00.

A sustained move over 2721.00 will indicate the presence of buyers. If this creates enough upside momentum, we could see a retest of 2741.75 followed by 2749.25. The latter is the trigger point for an acceleration to the upside.

A sustained move under 2731.00 will signal the presence of sellers. This could trigger a fast move into 2707.75. This is followed closely by 2704.50 and 2700.50.

Taking out the minor bottom at 2700.50 could trigger an acceleration to the downside with 2666.50 the first major downside target.