E-mini S&P 500 Index (ES) Futures Technical Analysis – May 25, 2018 Forecast

June E-mini S&P 500 Index futures are called lower based on the pre-market trade. Volume is expected to come in well-below average ahead of the long U.S. holiday week-end.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is down. A trade through 2741.75 will signal a resumption of the uptrend. A trade through 2704.50 then 2700.50 will indicate the selling pressure is getting stronger.

Today’s session begins with the index trading inside a major retracement zone, bounded by 2707.75 and 2749.25. This zone is controlling the longer-term direction of the market.

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

The main range is 2591.25 to 2741.75. If the selling pressure continues 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 June E-mini S&P 500 Index today is likely to be determined by trader reaction to the pivot at 2721.00.

A sustained move over 2721.00 will indicate the presence of buyers. If this generates 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 2721.00 will signal the presence of sellers. This could trigger a spike into a series of potential support levels at 2707.75, 2704.50 and 2700.50. Taking out 2700.50 will indicate the selling is getting stronger with 2666.50 the next major downside target.