E-mini S&P 500 Index (ES) Futures Technical Analysis – May 24, 2019 Forecast

June E-mini S&P 500 Index futures are called higher based on the pre-market trade. The short-covering rally is being fueled by comments from President Trump, who said the ongoing trade war could be over quickly. Position-squaring ahead of the long-holiday weekend could also be behind the move. Nonetheless, the market is still on pace to post a lower close for the week.

At 12:47 GMT, June E-mini S&P 500 Index futures are trading 2832.25, up 12.75 or +0.46%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2799.75 will signal a resumption of the downtrend. The main trend will change to up on a move through 2894.00.

The main range is 2726.50 to 2961.25. Its retracement zone at 2844.00 to 2816.00 is controlling the longer-term direction of the index. The market is currently trading inside this range.

The short-term range is 2961.25 to 2799.25. Its retracement zone at 2880.50 to 2899.50 is resistance. This zone stopped the rally at 2894.00 last week.

Daily Technical Forecast

Based on the early price action and the current price at 2832.25, the direction of the June E-mini S&P 500 Index on Friday is likely to be determined by a longer-term uptrending Gann angle at 2834.50.

Bullish Scenario

A sustained move over 2834.50 will indicate the presence of buyers. The first target is the 50% level at 2844.00, followed closely by a downtrending Gann angle at 2846.00.

Look for sellers on the first test of 2846.00. However, this price is also the trigger point for an acceleration into the next downtrending Gann angle at 2870.00.

Bearish Scenario

A sustained move under 2834.50 will signal the presence of sellers. Crossing to the weak side of the downtrending Gann angle at 2825.25 will indicate the selling is getting stronger. This could lead to a test of the main Fibonacci level at 2816.00.

Taking out yesterday’s low at 2805.75 will be another sign of weakness. Taking out 2799.75 will signal a resumption of the downtrend. This could trigger a further break into the uptrending Gann angle at 2780.50.