E-mini S&P 500 Index (ES) Futures Technical Analysis – Still Vulnerable to Closing Price Reversal Top

Based on the early price action, the direction of the index into the close is likely to be determined by trader reaction to the major 50% level at 2707.75.
James Hyerczyk
E-mini S&P 500 Index
E-mini S&P 500 Index

June E-mini S&P 500 Index futures are trading higher at the mid-session on Wednesday. Earnings continue to be supportive, but the market is getting an additional boost from a surge in oil sector stocks. Weakness in IBM has been a little bit of a drag on the index.

Daily June E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Momentum has been steadily increasing since the trend changed to up on the trade through 2672.25 late last week.

The index is currently trading inside a major retracement zone bounded by 2707.75 and 2749.25. This zone is controlling the longer-term direction of the market.

The new short-term range is 2552.00 to 2718.50. Its retracement zone is new support at 2635.25 to 2615.50.

The market isn’t close to changing the main trend to down, but it is in the window of time for a closing price reversal top.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the index into the close is likely to be determined by trader reaction to the major 50% level at 2707.75.

A sustained move over 2707.75 will signal the presence of buyers. If this move can generate enough upside momentum, we’re looking at a possible extension of the rally into the main Fibonacci level at 2749.25.

A sustained move under 2707.75 will indicate the presence of sellers. This could trigger a break into the next 50% level at 2679.50.

The 50% level at 2679.50 is the trigger point for a potential acceleration to the downside with 2635.25 the next likely downside target.

Watch the price action and read the order flow at 2707.75 all session. Trader reaction to this level will tell us if the bulls are still in control, or if the selling is greater than the buying at current price levels.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US