E-mini S&P 500 Index (ES) Futures Technical Analysis – 2652.50 – 2765.50 Next Major Resistance Area

June E-mini S&P 500 Index futures are in a position to close higher on Wednesday despite struggling to sustain strong gains from the previous session as fears about the economic toll of the coronavirus pandemic overshadowed optimism from sweeping fiscal and monetary stimulus to aid businesses and households.

The benchmark index spiked higher early in the session as Washington reached a deal on a $2 trillion economic rescue package following aggressive liquidity moves by the Federal Reserve earlier this week. However, both moves failed to ease concerns about a global recession. Additionally, investors also continued to express concerns over the likelihood of corporate defaults amid a collapse in business activity.

At 20:21 GMT, June E-mini S&P 500 Index futures are trading 2465.50, up 27.50 or +1.13%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has shifted to the upside. A trade through 2174.00 will signal a resumption of the downtrend.

The index is in no position to change the main trend to up, but there is room for a normal 50% to 61.8% retracement of the last sell-off.

The minor trend is up. It changed to up when buyers took out the last swing bottom at 2499.00. This move also shifted momentum to the upside.

The short-term range is 3131.00 to 2174.00. Its retracement zone at 2652.50 to 2765.50 is the primary upside target. Since the main trend is down, sellers are likely to show up on a test of this area.

Daily June E-mini S&P 500 Index

Short-Term Outlook

Although sellers can emerge at any time, the best resistance area is 2652.50 to 2765.50.

A test of this zone is likely to attract short-sellers because they want to try to form another secondary lower top.

While the retracement zone is the best upside target, a pair of downtrending Gann angles at 2619.00 and 2629.75 could also prove to be a stopper.

On the downside, a series of untested uptrending Gann angles could slow down the selling pressure as aggressive counter-trend buyers arrive in an effort to form a secondary higher bottom.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.