E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 2652.50 Sets the Tone Today

June E-mini S&P 500 Index futures are called higher based on the pre-market trade on the hopes that the coronavirus outbreak was nearing its peak in the United States, despite the country posting a record single-day jump of more than 1,800 deaths.

On Tuesday, the benchmark index posted a potentially bearish chart pattern when a tumble in oil prices wiped out early gains in a market still feeding on regular doses of news on corporate layoffs, cutbacks and losses.

At 12:25 GMT, June E-mini S&P 500 Index futures are trading 2673.50, up 31.50 or +1.19%.

Traders are saying the early momentum is being fueled by upbeat comments from President Trump who said late Tuesday that the United States might be getting on the top of the “curve” of the outbreak. Meanwhile, crude oil traders have turned optimistic about the chances of Saudi Arabia and Russia reaching a deal to curb production.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside after yesterday’s closing price reversal top was confirmed earlier in the session.

A trade through 2750.00 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down when sellers take out the last swing bottom at 2424.75.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2652.50 to 2765.50 is potential resistance. It is currently being tested.

The main range is 3397.75 to 2174.00. Its retracement zone at 2786.00 to 2930.25 is major resistance.

The minor range is 2424.75 to 2750.00. Its retracement zone at 2587.25 to 2549.00 is the first support area.

The short-term range is 2174.00 to 2750.00. Its retracement zone at 2462.00 to 2394.00 is the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at 2673.50, the direction of the June E-mini S&P 500 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the 50% level at 2652.50.

Bullish Scenario

A sustained move over 2652.50 will indicate the presence of buyers. The first target is a downtrending Gann angle at 2715.00.

Overtaking 2715.00 could trigger an acceleration to the upside with the next targets the reversal top at 2750.00, a Fibonacci level at 2765.50 and a 50% level at 2786.00.

Bearish Scenario

A sustained move under 2652.50 will signal the presence of sellers. This could trigger a break into the minor 50% level at 2587.25 and a potential support cluster at 2558 to 2549.00.

Taking out 2549.00 could trigger an acceleration into the short-term 50% level at 2462.00.