E-mini S&P 500 Index (ES) Futures Technical Analysis – May 9, 2018 Forecast

June E-mini S&P 500 Index futures are trading higher an hour after the cash market opening. Buyers have clawed back yesterday’s spike to the downside which may be an indication investors have moved on from the U.S. decision to withdraw from the Iranian nuclear pact. Core PPI matched expectations at 0.2%, but PPI was lower than expected at 0.1%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on a trade through 2682.25. The main bottom is 2591.25. A trade through this level will change the main trend to down.

The minor trend will change to down on a move through 2652.25.

The main range is 2807.25 to 2552.00. Its 50% level or pivot is 2679.75.

The short-term range is 2552.00 to 2718.50. Its retracement zone at 2635.25 to 2515.50 is support.

A longer-term retracement zone at 2708.00 to 2749.25 is the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index the rest of the session is likely to be determined by trader reaction to the 50% level at 2679.75.

A sustained move over 2679.75 will indicate the presence of buyers. The buying could get stronger on a move through the previous stop at 2682.25. This could trigger a surge into the major 50% level at 2708.00, followed by another main top at 2718.50. This is another trigger point for an acceleration into the main Fibonacci level at 2749.25.

A sustained move under 2679.75 will signal the presence of sellers. This could drive the index into 2652.25.

Taking out 2652.25 will change the minor trend to down and shift momentum to the downside. This could trigger a further break into the short-term 50% level at 2635.25.

Watch the price action and read the order flow at 2679.75 all session. This price is controlling the direction of the index today.