E-mini S&P 500 Index (ES) Futures Technical Analysis – May 5, 2016 Forecast

June E-mini S&P 500 Index futures are called higher shortly before the cash market opening. During the pre-market session, the index consolidated for a second day inside a key retracement zone. This could be position-squaring ahead of Friday’s U.S. Non-Farm Payrolls report.

The main trend is down according to the daily swing chart. The main range is 2012.25 to 2105.25. Its retracement zone at 2058.75 to 2047.75 is currently being tested.

The short-term range is 2105.25 to 2045.75, its retracement zone at 2070.00 to 2075.75 is the primary upside target.

Based on yesterday’s close at 2047.00 and the earlier price action, the direction of the index the rest of the session will be determined by trader reaction to the Fib level at 2047.75.

A sustained move over 2047.75 will indicate the presence of buyers. Initially, the rally should be labored because of potential resistance at 2054.25, 2058.75 and 2061.25.

Taking out 2061.25 could trigger an acceleration to the upside with the next target the short-term 50% level at 2070.00. This is followed by a downtrending angle at 2074.25.

Based on the current price at 2053.25, the first sign of selling pressure will be the inability to overcome the downtrending angle at 2054.25. Taking out 2047.75 will indicate the selling is getting stronger. This could drive the index through last week’s low at 2045.75 and into the long-term uptrending angle at 2041.25.

The daily chart opens up to the downside under 2041.25 with the next target angle coming in at 2026.75. This is the last potential support angle before the 2012.25 main bottom.