E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Take Out 2923.50 to Reaffirm Uptrend

June E-mini S&P 500 Index futures are inching higher early Tuesday, helped by a slight gain in the Asian markets and expectations of a higher opening in Europe. Investors are still on the sidelines waiting for some of the biggest S&P 500 companies, including Boeing Co, Coca Cola, Procter & Gamble and Microsoft to report first-quarter results later in the week.

At 05:44 GMT, June E-mini S&P 500 Index futures are trading 2914.50, up 2.00 or +0.06%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at 2923.50 on April 17. A trade through this top will negate the chart pattern and signal a resumption of the uptrend.

The minor trend is also up. A trade through 2889.50 will change the minor trend to down. This will also confirm the shift in momentum.

The first minor range is 2923.50 to 2889.50. Its 50% level or pivot at 2906.50 is controlling the direction of the market today.

The second minor range is 2877.25 to 2923.50. Its 50% level or pivot at 2900.25 is additional support.

The short-term range is 2789.50 to 2923.50. Its retracement zone at 2856.50 to 2840.75 is also a value area.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to the first short-term pivot at 2906.50.

Bullish Scenario

A sustained move over 2906.50 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at 2923.50. Taking out this level could trigger an acceleration to the upside since there is no resistance until the all-time high at 2961.25.

Bearish Scenario

A sustained move under 2906.50 will signal the presence of sellers. The next target is the 50% level at 2900.25. If this fails then look for sellers to go after the minor bottom at 2889.50. Taking out this level could trigger a further break into the next minor bottom at 2877.25. This is the trigger point for an acceleration to the downside with the 50% level at 2856.50 the next major support target.