E-mini S&P 500 Index (ES) Futures Technical Analysis – May 31, 2019 Forecast

June E-mini S&P 500 Index futures are expected to open sharply lower based on the pre-market trade. The market is being pressured by fear of an economic slowdown that could turn into a recession. The catalyst behind today’s early session weakness is the surprise threat of tariffs on all Mexico imports.

The S&P 500 Index was already down 5.3% this month through Thursday after trade talks between the United States and China fell apart earlier in the month, smashing the chances of an agreement.

At 13:18 GMT, June E-mini S&P 500 Index futures are trading 2761.50, down 29.00 or -1.05%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The down trend was reaffirmed earlier today. The next downside target is the March 8 bottom at 2726.50. This is followed by the February 8 main bottom at 2686.00 and a major retracement zone.

The main range is 2319.25 to 2961.25. If the downside momentum continues then look for the selling to possibly extend into its 50% to 61.8% retracement zone at 2640.25 to 2564.50.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to the long-term uptrending Gann angle at 2747.25.

Bullish Scenario

A sustained move over 2747.25 will indicate the presence of aggressive counter-trend buyers. If this can create enough upside momentum then look for a potential rally into a downtrending Gann angle at 2793.25. Turning higher for the session will put the index in a position to post a potentially bullish closing price reversal bottom. This could lead to an eventual test of the downtrending Gann angle at 2814.00.

Bearish Scenario

Taking out the uptrending Gann angle at 2747.25 will signal the presence of sellers. This can create enough downside momentum to challenge the next main bottom at 2726.50.

Taking out 2726.50 will reaffirm the downtrend. This could trigger a further break into the 2686.00 main bottom. If this fails then look for a move into the 50% level at 2640.25.