E-mini S&P 500 Index (ES) Futures Technical Analysis – May 31, 2018 Forecast

June E-mini S&P 500 Index futures are trading lower after reversing earlier strength. The catalyst behind the selling pressure is President Trump’s surprise announcement of U.S. tariffs on steel and aluminum imports from the European Union, Canada and Mexico. The news led to increasing trade tensions in an already nervous market.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been drifting since the formation of the closing price reversal top at 2741.75 on May 22.

A trade through 2741.75 will signal a resumption of the uptrend. A move through 2675.00 will indicate the selling pressure is getting stronger.

The short-term range is 2741.75 to 2675.00. Its 50% level or pivot 2708.25 is controlling the direction today. This price is support.

Daily Technical Forecast

Given the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 2717.75.

A sustained move under 2717.75 will indicate the presence of sellers. This could lead to a test of the pivot at 2708.00. Watch for a bounce on the first test of the pivot. If it fails then look for an acceleration into a long-term downtrending Gann angle at 2697.25.

The selling will extend further if 2697.25 fails with potential targets coming in at 2675.00 and 2667.25.

Holding the pivot at 2708.25 will signal the presence of buyers. However, don’t expect the index to pick up strength unless buyers can overcome 2717.75. If this occurs, we could see a drive into a pair of downtrending Gann angles at 2729.75 and 2735.75.

The Gann angle at 2735.75 is the last potential resistance angle before the 2741.75 main top.