E-mini S&P 500 Index (ES) Futures Technical Analysis – Trade Through 2499.00 Shifts Momentum to Upside

June E-mini S&P 500 Index futures are trading sharply higher shortly after the cash market opening on the hopes that U.S. lawmakers will reach an agreement on a stimulus bill designed to rescue the economy from the coronavirus.

The market is also getting support from the Federal Reserve, which said Monday it would embark on an open-ended asset purchase program. The central bank said the program will run in the “amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

At 13:38 GMT, June E-mini S&P 500 Index futures are trading 2353.00, up 132.50 or +5.97%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2174.00 will signal a resumption of the downtrend.

The main trend will change to up on a trade through the last main top at 3397.75. This is highly unlikely, but there is room for a 50% to 61.8% retracement.

The minor range is also down. A trade through 2499.00 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 2499.00 to 2174.00. Its pivot or 50% level is 2336.50.

The short-term range is 3131.00 to 2174.00. Its retracement zone at 2652.50 to 2765.50 is the primary upside target.

Daily Technical Forecast

Based on the early price action and the current price at 2353.00, the direction of the June E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by the pivot at 2336.50.

Bullish Scenario

A sustained move over 2336.50 will indicate the presence of buyers. Taking out yesterday’s high at 2386.00 will indicate the buying is getting stronger. This could trigger a surge into the minor top at 2499.00.

A trade through 2499.00 will change the minor trend to up. This could trigger an acceleration into a major resistance cluster at 2651.00 to 2661.75. Look for sellers to return on a test of this area.

Bearish Scenario

A sustained move under 2336.50 will signal the presence of sellers. This could lead to a retest of 2174.00.

Crossing to the weak side of the steep downtrending Gann angle at 2171.00 will put the index in an extremely bearish position.