E-mini S&P 500 Index (ES) Futures Technical Analysis – May 28, 2019 Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the downtrending Gann angle at 2830.00.
James Hyerczyk
E-mini S&P 500 Index

June E-mini S&P 500 Index futures are edging lower at the mid-session after giving back earlier gains. Gains were limited by tensions over a potential prolonged trade dispute between the United States and China, but supported because there was no escalation of the dispute over the long holiday weekend.

The rally was also supported by a strong recovery in technology shares which were beat up recently due to a new technology war between the U.S. and telecom giant Hauwei. However, helping to cap prices was a comment from President Trump that suggested conditions were worsening. Trump said Monday the U.S. was “not ready” to make a deal with China, before adding he expected one in the future. Trump also said tariffs on Chinese imports could go up “substantially.”

At 15:41 GMT, June E-mini S&P 500 Index futures are trading 2829.00, down 2.75 or -0.08%.

Daily June E-mini S&P 500 Index

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 index is also posting an inside move for a second session, suggesting investor indecision and impending volatility.

The index is trading inside a major retracement zone bounded by a 50% level at 2844.00 and a Fibonacci level at 2816.00. This zone is controlling the longer-term direction of the index.

The short-term range is 2894.00 to 2805.75. Its retracement zone at 2850.00 to 2860.25 is the next upside target and potential resistance.

The main range is 2961.25 to 2799.75. Its retracement zone is also resistance. It stopped the rally at 2894.00 on May 16.

The short-term retracement zone is resistance because sellers are going to continue to try to form secondary lower tops as the market moves lower.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the downtrending Gann angle at 2830.00.

Bullish Scenario

A sustained move over 2830.00 will indicate the presence of buyers. This could trigger a rally into a pair of 50% levels at 2844.00 and 2850.00. The latter is a potential trigger point for an acceleration into a resistance cluster at 2860.25 to 2862.00.

Bearish Scenario

A sustained move under 2830.00 will signal the presence of sellers. The next target is the major Fibonacci level at 2816.00. Crossing to the weak side of a downtrending Gann angle at 2809.25 will put the index in a bearish position.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US