E-mini S&P 500 Index (ES) Futures Technical Analysis – Next Target Under 3111.50 is 3067.50

June E-mini S&P 500 Index futures are trading sharply lower shortly after the cash opening on Thursday on fears of a second wave of coronavirus infections and a grim economic forecast from the Federal Reserve.

Shares of airlines, cruise operators and casinos slumped as Reuters analysis showed new cases rose in the United States after five weeks of declines.

United Airlines Holdings Inc., American Airlines, Norwegian Cruise Line Holdings Ltd., Royal Caribbean Cruises Ltd. and Wynn Resorts slumped between 9% and 13% in premarket trading.

Wall Street’s fear gauge, the CBOE volatility index, rose above 30 points for the first time since June 1.

At 14:32 GMT, June E-mini S&P 500 Index futures are trading 3104.50, down 81.50 or -2.56%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3231.25 will signal a resumption of the uptrend. A move through 2760.25 will change the main trend to down.

The minor trend is also up. A trade through 2992.00 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 2992.00 to 3231.25. Its 50% level at 3111.50 is the first support.

The short-term range is 2903.75 to 3231.25. Its 50% level at 3067.50 is the second support level.

The intermediate range is 2760.25 to 3231.25. Its 50% level at 2995.75 is a third potential support level.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 3104.50, the direction of the June E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to 3111.50.

Bearish Scenario

A sustained move under 3111.50 will indicate the selling is getting stronger. If this creates enough downside momentum then look for the selling to possibly extend into 3067.50.

Taking out 3067.50 could trigger an acceleration to the downside with the next target 2995.75.

Bullish Scenario

Recapturing 3111.75 will signal the return of buyers. This could trigger an intraday rally into 3164.25. Overcoming this level could put the index in a position to challenge 3231.25.