E-mini S&P 500 Index (ES) Futures Technical Analysis – May 8, 2018 Forecast

June E-mini S&P 500 Index futures are called lower based on the pre-market trade. There may be some light position-squaring taking place ahead of President Trump’s announcement on the Iran nuclear deal at 1800 GMT.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2682.25 will change the main trend to up. A move through 2591.25 will signal a resumption of the downtrend.

The price action is also being controlled by a number of retracement levels.

On the upside, the nearest 50% level comes in at 2679.75. This was tested successfully on Monday.

The next upside target is the retracement zone bounded by 2708.00 to 2749.25. This zone stopped a rally at 2718.50 on April 18.

The short-term range is 2552.00 to 2718.50. Its retracement zone at 2635.25 to 2615.50 is the primary downside target. This zone was tested successfully over the past three weeks.

Daily Swing Chart Technical Forecast

Based on the early trade today and yesterday’s price action, the direction of the index today is likely to be determined by trader reaction to the main top at 2682.25.

A sustained move under 2682.25 will indicate that investors are continuing to defend the downtrend. If this generates enough downside pressure, we could see a pullback into the short-term 50% level at 2635.25, followed by the short-term Fibonacci level at 2615.50 and the main bottom at 2591.25.

Taking out 2682.25 will change the main trend to up. This could trigger a spike into the major 50% level at 2708.00, followed by another main top at 2718.50. This is a potential trigger point for a further acceleration into a major Fibonacci level at 2749.25.