E-mini S&P 500 Index (ES) Futures Technical Analysis – Turns Lower for Week Under 2910.00

June E-mini S&P 500 Index futures are trading slightly lower early Friday in reaction to weakness in the Asian trade. An overnight decline in Dow futures and a dramatic reversal to the downside by the NASDAQ after the cash market close on Thursday are also contributing to the selling pressure.

The pressure on the Dow began before the opening bell on Thursday after a sharp decline in 3M shares dragged the blue chip index lower. After the close, guidance from Amazon weighed on the technology sector of the benchmark index.

At 03:50 GMT, June E-mini S&P 500 Index futures are trading 2923.00, down 3.25 or -0.11%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2939.75 will signal a resumption of the uptrend. A move through 2889.50 will change the main trend to down. The index is also within striking distance of last week’s close at 2910.00. Finishing under this level will produce a potentially bearish closing price reversal top.

The short-term range is 2889.50 to 2939.75. Its retracement zone at 2914.50 to 2908.75 is the first downside target. This area was tested successfully on Thursday.

The intermediate range is 2789.50 to 2939.75. If the main trend changes to down then its retracement zone at 2864.50 to 2847.00 will become the next downside target.

The main range is 2726.50 to 2939.75. Its retracement zone at 2833.00 to 2808.00 is the best value zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to the short-term 50% level at 2914.50.

Bullish Scenario

A sustained move over 2914.50 will indicate the presence of buyers. If this generates enough upside momentum then buyers could make a run at 2939.75. Taking out this top could lead to a test of the all-time high at 2961.25.

Bearish Scenario

A sustained move under 2914.50 will signal the presence of sellers. This could lead to a quick test of the short-term Fibonacci level at 2908.75. Since the trend is up, buyers could come in and try to form a secondary higher bottom.

If 2908.75 fails as support then look for an acceleration to the downside with 2889.50 the next major downside target. Taking out this level will change the main trend to down.