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E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Decision Time as Market Tests 2844.00 to 2816.00 Retracement Zone

By:
James Hyerczyk
Published: May 27, 2019, 06:40 UTC

Judging from last week’s price action and the close at 2831.75, the direction of the June E-mini S&P 500 Index this week is likely to be determined by trader reaction to the 50% level at 2844.00 and the Fibonacci level at 2916.00.

E-mini S&P 500 Index

June E-mini 500 Index futures settled higher on Friday, bouncing back from the steep sell-off the previous session. The price action produced an inside move that tends to indicate investor indecision and impending volatility. In this case, however, when coupled with the below-average volume, it probably indicated position-squaring ahead of the long holiday weekend.

On Friday, June E-mini 500 Index futures settled at 2831.75, up 12.25 or +0.43%. The U.S. stock exchanges are closed on Monday and so is the CME so don’t try to trade today.

E-mini S&P 500 Index
Daily June E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2799.75 will reaffirm the downtrend. The first target is the main bottom at 2789.50. The daily chart opens up to the downside under this bottom. The main trend will change to up on a move through the swing top at 2894.00.

The main range is 2726.50 to 2961.25. Its retracement zone at 2844.00 to 2816.00 is controlling the longer-term direction of the index. The market close inside this zone on Friday.

The short-term range is 2961.25 to 2799.75. Its retracement zone at 2880.50 to 2899.50 is resistance. This zone stopped the rally at 2894.00 on May 16.

Daily Swing Chart Technical Forecast

Judging from last week’s price action and the close at 2831.75, the direction of the June E-mini S&P 500 Index this week is likely to be determined by trader reaction to the 50% level at 2844.00 and the Fibonacci level at 2916.00.

Overtaking 2844.00 will indicate that buyers have successfully defended against a steep sell-off. This could trigger a retest of 2880.50 to 2899.50.

A failure at 2816.00 will signal that the selling is getting stronger. This could lead to a test of 2805.75 and 2799.75 and perhaps an acceleration to the downside.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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