E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – April 10, 2019 Forecast

June E-mini S&P 500 Index futures are trading higher shortly after the opening. Volume is light ahead of the release of the minutes of the Fed’s March meeting at 18:00 GMT. Although investors expect the minutes to reiterate the Fed’s dovish tone, there is always the possibility of a surprise. Traders will be looking for information on what Fed policymakers had to say about the weakening economic data, and whether they discussed the possibility of a rate cut.

E-mini S&P 500 Index
Daily June E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, yesterday’s closing price reversal top may be signaling a shift in momentum to the downside. If confirmed on a trade through 2877.25 then look for a potential 2 to 3 day correction.

A trade through 2900.00 will negate the closing price reversal top and signal a resumption of the uptrend. The index is not in a position to change the main trend to down, but there is room for a correction.

The short-term range is 2789.50 to 2900.00. If there is a correction then its retracement zone at 2844.75 to 2831.75 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the June E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 2885.50.

Bullish Scenario

A sustained move over 2885.50 will indicate the presence of buyers. Overcoming the next uptrending Gann angle at 2895.00 will indicate the buying is getting stronger.

Taking out 2900.00 will negate the reversal top and signal a resumption of the uptrend. This could extend the rally into another uptrending Gann angle at 2910.50. Crossing to the strong side of this angle will put the index in a bullish position.

Bearish Scenario

A sustained move under 2885.50 will signal the presence of sellers. The daily chart is wide open under this angle. This could trigger an acceleration to the downside with the next target a short-term 50% level at 2844.75, followed by an uptrending Gann angle at 2837.50 and a Fibonacci level at 2831.75.

Look for buyers to show up on a test of 2844.75 to 2831.75.

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.