E-mini S&P 500 Index (ES) Futures Technical Analysis – May 25, 2017 Forecast

June E-mini S&P 500 Index futures are trading higher shortly before the cash market opening. With economic reports limited today, traders are likely to react to fresh news regarding the OPEC production cut extensions while continuing to digest the impact of yesterday’s Fed minutes. Traders will also get the chance to respond to comments from Fed Governor Lael Brainard and St. Louis Fed President James Bullard.

Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Wednesday after the release of the Fed minutes. The market is only up 5 days since the last swing bottom, but since we are at new all-time highs, traders should start watching for a potentially bearish closing price reversal top.

The move is not expected to turn the main trend to down, but it may be necessary to alleviate some of the excessive upside pressure.

Falling back under the old main top at 2404.50 will be the first sign of weakness today.

Forecast

Based on the current price at 2407.75 and the earlier price action, the direction of the index the rest of the session is likely to be determined by trader reaction to yesterday’s close at 2402.00.

Holding above yesterday’s close at 2402.00 will indicate the presence of buyers. Falling below this price will signal the presence of sellers.

If the strong buying continues then the next upside target is the steep uptrending angle at 2424.50.

The nearest support angle comes in at 2364.50.

Today will be about momentum and whether investors will be willing to continue to buy strength even at current historical price levels.