E-mini S&P 500 Index (ES) Futures Technical Analysis – Remains Bearish Under 2427.00 Gann Angle

June E-mini S&P 500 index futures are expected to open sharply lower based on the pre-market trade. The index is currently trading ‘limit down’ with a pool of sell orders sitting on the offer. This indicates further downside action is likely.

Traders said the inability of the federal government to settle the nerves of investors with the promise of a $1 trillion stimulus package turned the market lower after Tuesday’s higher close.

At 12:51 GMT, June E-mini S&P 500 Index futures are trading 2393.50, down 92.00 or -3.70%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2350.00 will signal a resumption of the downtrend. This could lead to a test of the December 26, 2018 main bottom at 2319.25.

The current short-term range is 3131.00 to 2350.00. Its retracement zone at 2740.50 to 2832.75 is resistance. This zone will drop if new lows are made.

The main trend will change to up on a move through 3131.00. This is highly unlikely, but due to the prolonged move down in terms of price and time, the market remains ripe for a closing price reversal bottom.

Daily Technical Forecast

Based on the early price action and the current price at 2393.50, the direction of the June E-mini S&P 500 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the steep downtrending Gann angle at 2427.00.

Bearish Scenario

A sustained move under 2427.00 will indicate the presence of sellers. The first downside target is 2350.00, followed closely by 2319.25.

The main bottom at 2319.25 is a potential trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over 2427.00 will signal the presence of buyers. Overtaking yesterday’s close at 2474.75 will turn the index higher for the session. This will also put the index in a positon to post a potentially bullish closing price reversal bottom.

This chart pattern won’t change the main trend to up, but if confirmed, it could lead to the start of a 2 to 3 day counter-trend rally.