E-mini S&P 500 Index (ES) Futures Technical Analysis – Should Test 2885.00 – 2930.25 on Tuesday

June E-mini S&P 500 Index futures rallied on Monday as investors celebrated the possibility of reopening the economy after the coronavirus outbreak. The market never struggled during the session, opening strong Sunday night then pushing higher before the cash market opening after the Bank of Japan announced more stimulus measures.

At 21:45 GMT, June E-mini S&P 500 Index futures are trading 2867.50, up 38.00 or +1.34%. The high of the session was 2881.25. This was just shy of the recent top at 2885.00.

The financials sector led the S&P 500 Index higher, climbing more than 3%. Citigroup shares rallied more than 6% while Wells Fargo and Bank of America were each up over 4%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend will change to up on a trade through 2885.00. A move through 2717.25 will signal a resumption of the downtrend.

The minor trend is up. This led to the shift in momentum to the upside.

The minor range is 2885.00 to 2717.25. Its 50% level or pivot at 2821.00 is new support.

An additional support cluster comes in at 2785.75 to 2765.50.

Short-Term Outlook

Look for the upside bias to continue as long as the index can hold the pivot at 2821.00. If this move creates enough upside momentum then look for buyers to take out 2885.00, changing the main trend to up. This could trigger an acceleration into the major Fibonacci level at 2930.25.

For longer-term bullish traders, the key to extending the rally will be overtaking 2930.25.

On the downside, a failure at 2821.00 will signal the presence of sellers. This could lead to a pullback into 2785.75 to 2765.50.

Taking out 2765.50 with big selling volume could trigger an acceleration to the downside with the next targets 2717.25 and 2652.50.