E-mini S&P 500 Index (ES) Futures Technical Analysis – Sitting Inside Major Retracement Zone

June E-mini S&P 500 Index futures are edging lower early Monday as investors weighed the latest coronavirus news along with a sharp decline in U.S. crude prices.

The benchmark index is following the decline in the May WTI crude oil futures contract that plunged about 19% to $14.69 per barrel on a weak demand outlook and storage capacity issues.

At 08:06 GMT, June E-mini S&P 500 Index futures are trading 2851.50, down 18.50 or -0.64%.

In Coronavirus news, New York Governor Andrew Cuomo said Sunday the state is “past the high point” of new cases, noting the infection rate has fallen along with coronavirus-related hospitalizations. Cuomo added New York will roll out antibody testing this week. In New Jersey, Governor Phil Murphy said Saturday:  ‘We’re flattening the curve.”

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2885.00 will signal a resumption of the uptrend. A trade through 2746.00 will change the main trend to down.

The main range is 3397.75 to 2174.00. The index is currently trading inside its retracement zone at 2785.75 to 2930.25. This zone is controlling the longer-term direction of the index.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2765.50 to 2652.50 is support.

Combining the two retracement zones creates a major support cluster at 2785.75 to 2765.50. This zone is very important to the structure of the chart pattern.

The short-term range is 2174.00 to 2846.00. If the trend changes to down then its retracement zone at 2510.00 to 2430.75 will become the next major downside target zone.

Daily Swing Chart Technical Forecast

A trade through Friday’s high at 2885.00 will signal a resumption of the uptrend. This could lead to a quick test of the main Fibonacci level at 2930.25. This is a potential trigger point for an acceleration to the upside since the next major target doesn’t come in until 3131.00.

A failure to overcome or sustain a rally over 2885.00 will signal the presence of sellers. This could trigger a break into the main 50% level at 2785.75, the intermediate Fibonacci level at 2765.50 and the main bottom at 2746.00.

If 2746.00 is taken out with rising volume then look for a potential acceleration into 2652.50.