E-mini S&P 500 Index (ES) Futures Technical Analysis – Upside Momentum Targets 2652.50

June E-mini S&P 500 Index futures are expected to open higher on Monday based on a solid performance in the pre-market trade. Overnight, the index jumped nearly 4% after President Trump expressed hope that the coronavirus health crisis was “leveling-off” in some of the hardest-hit U.S. states.

Besides Trump’s optimistic tone, investors are also reacting to the first daily decline in coronavirus-related deaths in New York State, slowing death rates in Europe and the news that Russia and Saudi Arabia were very close to a deal on production losses.

At 13:23 GMT, June E-mini S&P 500 Index futures are trading 2577.50, up 94.75 or +3.82%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2635.75 will change the main trend to up. A move through 2424.75 will signal a resumption of the downtrend.

The minor range is 2635.75 to 2424.75. Its 50% level or pivot at 2530.25 is controlling the price action today.

The short-term range is 2174.00 to 2635.75. Its retracement zone at 2404.75 to 2350.25 is support.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2652.50 to 2765.50 is the next upside target and possible resistance.

Daily Technical Forecast

Based on the early price action and the current price at 2577.50, the direction of the June E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to the minor pivot at 2530.25.

Bullish Scenario

A sustained move over 2530.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into 2635.75 to 2652.50.

Bearish Scenario

A sustained move under 2530.25 will signal the presence of sellers. This could trigger a break into the uptrending Gann angle at 2494.00.

Taking out 2494.00 could trigger an acceleration to the downside with the next target the short-term 50% level at 2404.75.