E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 2786.00, Weakens Under 2765.50

June E-mini S&P 500 Index futures are inching higher shortly before the cash market opening on Thursday. Helping to boost prices is a bounce in crude oil prices, following a week of violent fluctuations that have kept the markets on edge because of a slide in demand due to the coronavirus and persistent oversupply.

At 13:10 GMT, June E-mini S&P 500 Index futures are trading 2803.00, up 14.50 or +0.52%.

In other news, the U.S. House of Representatives expects to pass a nearly $500 billion coronavirus relief bill on Thursday but will put off any decision on changing its voting rules to avoid a potential partisan fight.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2717.25 will signal a resumption of the downtrend. The main trend will change to up on a move through the last swing top at 2885.00.

The major resistance is the long-term retracement zone at 2785.75 to 2930.25. This zone helped stop a rally recently at 2885.00. The index is trading inside this range early Thursday.

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

The short-term retracement zone at 2529.50 to 2445.50 is additional support.

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

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2803.00, the direction of the June E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the 50% level at 2786.00 and the Fibonacci level at 2765.50.

Bullish Scenario

A sustained move over 2786.00 will indicate the presence of buyers. The first upside target is the minor pivot at 2821.00. Overtaking this level will indicate the buying is getting stronger.

Bearish Scenario

A sustained move under 2765.50 will signal the presence of sellers. This could lead to a retest of 2717.25. Breaking this level is likely to lead to a test of the 50% level at 2652.50.