E-mini S&P 500 Index (ES) Futures Technical Analysis – Tight Range, Investors Waiting for Fresh Earnings News

June E-mini S&P 500 Index futures are trading lower shortly after the cash market opening. The relatively low volume suggests investors are still on the sidelines after the long Easter holiday week-end. Furthermore, we could be looking at position-squaring ahead of the start of the busiest week of the earnings season.

At 14:31 GMT, June E-mini S&P 500 Index futures are at 2907.25, down 2.75 or -0.09%.

Today’s weakness is being fueled by a drop in shares of Boeing, which fell more than 1%. Later this week, traders will get the opportunity to react to quarterly results from Coca Cola, Procter & Gamble, Facebook, Microsoft and others.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since last Wednesday’s closing price reversal top and Thursday’s subsequent confirmation.

A trade through 2923.50 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is also up. A move through 2889.50 will change the minor trend to down. This will confirm the shift in momentum.

The main range is 2789.50 to 2923.50. Its retracement zone at 2856.50 to 2840.75 is the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to the short-term downtrending Gann angle at 2907.50.

Bullish Scenario

Overtaking and sustaining a rally over 2907.50 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential rally into a pair of downtrending Gann angles at 2915.50 and 2919.50. The latter is the last potential resistance angle before the 2923.50 main top.

Taking out 2923.50 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target an uptrending Gann angle at 2941.50.

Bearish Scenario

A sustained move under 2907.50 will signal the presence of sellers. If this move creates enough downside momentum then look for a possible break into the downtrending Gann angle at 2891.50.

Crossing to the weak side of the angle at 2891.50 will put the index in a bearish position. Taking out the minor bottom at 2889.50 could trigger an acceleration to the downside with the next targets a minor bottom at 2877.25, an uptrending Gann angle at 2865.50 and a 50% level at 2856.50.