E-mini S&P 500 Index (ES) Futures Technical Analysis – Rebounding After Testing Key Retracement Zone; Could Hit 2828.25 Pivot

June E-mini S&P 500 Index futures are trading lower shortly after the cash market opening, but buyers have recaptured more than half of its earlier losses. The index started higher on Monday during the pre-market session in reaction to the release of the Mueller report which exonerated President Trump from a number potentially illegal acts.

At 1508 GMT, June E-mini S&P 500 Index futures are at 2807.25, down 3.50 or -0.12%.

The early rally failed and the index plunged after a steep drop in Treasury yields and an inversion of the yield curve drove up expectations for a recession earlier in the year. Prices began to rebound after the release of positive German consumer confidence data encouraged investors to drive Treasury yields higher.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has shifted to the downside. A trade through 2866.00 will signal a resumption of the uptrend. The main trend will change to down when sellers take out the main bottom at 2726.50.

The minor trend is down. This move confirmed the shift in momentum to the downside.

The main range is 2726.50 to 2866.00. Its retracement zone at 2796.25 to 2779.75 is the primary downside target. This zone was tested earlier in the session when the market hit its low at 2790.25. This move attracted buyers, helping to turn the index higher for the session.

Daily Technical Forecast

Based on the early price action and the current price at 2810.75, 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 uptrending Gann angle at 2814.50.

Bullish Scenario

A sustained move over 2814.50 will indicate the buying is getting stronger. If this move creates enough upside momentum then look for the intraday rally to possibly extend into a short-term pivot at 2828.25, followed by a downtrending Gann angle at 2834.00.

Look for the return of sellers on the initial test of 2828.25 to 2834.00. Overtaking 2834.00 could trigger an acceleration to the upside with the next target angle coming in at 2850.00.

Bearish Scenario

The inability to overcome and sustain a rally over 2814.50 will signal the presence of sellers. If this creates enough downside momentum then look for a retracement of the earlier rally with the next target a support cluster at 2802.00, 2798.00 and 2796.25.

Look for an acceleration to the downside if 2796.25 fails as support with the next downside target the main Fibonacci level at 2779.75.