E-mini S&P 500 Index (ES) Futures Technical Analysis – Near-Term Target Zone 2811.50 to 2831.00

June E-mini S&P 500 Index futures are trading higher at the mid-session. The market is following through the upside after confirming yesterday’s minor reversal bottom. The move could lead to a 2 to 3 day counter-trend rally, or a 50% to 61.8% retracement of the last swing down, or both.

At 15:24 GMT, June E-mini S&P 500 Index futures are trading 2786.25, up 36.75 or +1.34%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. Yesterday’s closing price reversal bottom and today’s confirmation of the chart pattern triggered the shift in momentum.

A trade through 2728.75 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a trade through 2894.00.

The short-term range is 2894.00 to 2728.75. Its retracement zone at 2811.50 to 2831.00 is the primary upside target. Since the main trend is down, look for sellers on the first test of this zone. They are going to try to form a secondary lower top.

The major support is a 50% level at 2640.25.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 2777.25.

Bullish Scenario

A sustained move over 2777.25 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the downtrending Gann angle at 2798.00. This is a potential trigger point for an acceleration to the upside with 2811.50 the next target, followed by 2831.00.

Bearish Scenario

A sustained move under 2777.25 late in the session will signal the presence of sellers. This could lead to a retest of the long-term uptrending Gann angle at 2755.25. If this fails then look for the selling to extend into the minor bottom at 2728.75. The daily chart is wide open under this bottom so anticipate an acceleration to the downside.