E-mini S&P 500 Index (ES) Futures Technical Analysis – Reaction to 2558.00 Sets the Tone

June E-mini S&P 500 Index futures are trading lower on Tuesday shortly after the cash market opening. Sellers came in earlier in the session after the index briefly broke through last week’s high. The early price action suggests some investors are booking profits ahead of the close of the worst quarterly performance in history.

At 13:58 GMT, June E-mini S&P 500 Index futures are trading 2591.75, down 19.50 or -0.75%.

In the cash S&P 500 Index market, the market is down about 11% in March, on pace for its worst month since 2008. The index is also off 18.7% this quarter, on track for its worst quarter since 2008 and its worst first quarter since 1938. On a positive note, the index is up about 17% from its March 23 bottom.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 2174.00 will signal a resumption of the downtrend. The main trend will change to up on a trade through 3131.00.

The minor trend is up. This is generating the upside momentum. A trade through 2445.00 will change the minor trend to down. This will shift momentum back to the downside.

The main range is 3131.00 to 2174.00. Its retracement zone at 2652.50 to 2765.50 is the primary upside target.

The short-term range is 2174.00 to 2635.75. Its retracement Zone at 2404.75 to 2350.25 is the primary downside target.

Daily Forecast

Based on the early price action and the current price at 2591.75, the direction of the June E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the steep uptrending Gann angle at 2558.00.

Bullish Scenario

A sustained move over 2558.00 will indicate the presence of buyers. If this generates enough upside momentum then look for a move into the 50% level at 2652.50. Look for sellers on the first test. Overcoming this level could drive the index into the Fibonacci level at 2765.50.

Bearish Scenario

A sustained move under 2558.00 will signal the presence of sellers. This could drive the index into a pair of downtrending Gann angles at 2501.75 and 2491.00.

Crossing to the weak side of 2491.00 could trigger an acceleration into the minor bottom at 2445.00, followed by the retracement zone at 2404.75 to 2350.25.