E-mini S&P 500 Index (ES) Futures Technical Analysis – Key Gann Angle at 2555.00 Controlling Direction

June E-mini S&P 500 index futures opened sharply lower Monday even after the Fed provided more monetary stimulus to curb slower economic growth amid the coronavirus outbreak. The move, which included another emergency 50 basis point rate cut, raised fears the central bank may be running out of weapons to combat the economic impact of the virus.

At 13:37 GMT, June E-mini S&P 500 Index futures are trading 2501.25, down 182.50 or -6.80%.

In the cash market, the S&P 500 dropped 8.14% shortly after the open, triggering a “circuit breaker” trading halt that will last for 15 minutes. Before the open, futures contracts tied to the major averages hit their “limit down” levels, meaning they could not trade below that threshold.

Daily June E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 2380.00 will negate a closing price reversal bottom and signal a resumption of the downtrend.

Taking out 2697.25 will confirm Friday’s closing price reversal bottom and shift momentum to the upside.

Daily Technical Forecast

Based on the early trade and the current price at 2501.25, 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 steep downtrending Gann angle at 2555.00.

Bearish Scenario

A sustained move under 2555.00 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to extend into 2380.00. If this fails then look for a move into the December 26, 2018 main bottom at 2319.25.

Bullish Scenario

A sustained move over 2555.00 will signal the return of buyers. If this move generates enough upside momentum then look for a possible acceleration into a pair of downtrending Gann angles at 2843.00 and 2853.50.

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.