E-mini S&P 500 Index (ES) Futures Technical Analysis – Weakens Under 2765.50, Strengthens Over 2786.00

June E-mini S&P 500 Index futures are pointing higher early in the session on Wednesday, as crude oil prices stabilized following recent weakness. Helping investor sentiment, Senate Republicans and Democrats passed on Tuesday evening a $484 billion coronavirus relief package for small businesses, hospitals and testing. The House is expected to approve the bill as early as Thursday.

At 06:15 GMT, June E-mini S&P 500 Index futures are trading at 2753.50, up 21.50 or +0.79%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend changed to down on Tuesday when sellers took out the last swing bottom at 2746.00. The main trend will change to up on a move through the last main top at 2885.00.

The main range is 3397.75 to 2174.00. Its retracement zone at 2786.00 to 2930.25 is resistance. This zone stopped the selling last week at 2885.00.

The intermediate range is 3131.00 to 2174.00. Its retracement zone is 2652.50 to 2765.50. The index is currently trading inside this zone.

The short-term range is 2174.00 to 2885.00. Its retracement zone at 2529.50 to 2445.50 is the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2753.50, 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 a pair of retracement levels at 2765.50 to 2786.00.

Bearish Scenario

A sustained move under 2765.50 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the 50% level at 2652.50. This is a potential trigger point for an even steeper decline into 2529.50 – 2445.50.

Bullish Scenario

Overtaking and sustaining a rally over 2786.00 will signal the return of buyers. The first minor target is 2801.25. This is followed by the main top at 2885.00 and the major Fibonacci level at 2930.25.