E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – May 8, 2019 Forecast

June E-mini S&P 500 Index futures are trading lower on Wednesday shortly before the cash market opening. The market is holding yesterday’s low, while posting an inside move. This indicates investor indecision and impending volatility. The key issue driving the price action this week is U.S.-China trade relations. So far, the selling has been normal with the index finding support inside a retracement zone.

At 13:16 GMT, June E-mini S&P 500 Index futures are at 2878.25, down 12.50 or -0.43%.

I’ve seen articles calling this week’s down move “panic-selling”, but I haven’t see that at all. The news has essentially wiped out a month’s worth of gains, but remember, some of those gains were generated by speculators betting on a U.S.-China trade deal.

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

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Monday when sellers took out the previous main bottom at 2889.50. The uptrend will resume when buyers take out 2961.25. The next major downside target is the March 25 bottom at 2789.50.

The main range is 2789.50 to 2961.25. Its retracement zone at 2875.25 to 2855.00 is currently being tested.

This zone is followed by the major retracement zone at 2843.75 to 2816.00.

Combining the two retracement zones creates a support zone cluster at 2855.00 to 2843.75. This area is the most important support zone.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to a downtrending Gann angle at 2881.25 and the 50% level at 2875.25.

Bullish Scenario

Overtaking 2881.25 will indicate the return of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the uptrending Gann angle at 2894.00. Overtaking this angle will indicate the buying is getting stronger. This could trigger a further rally into a pair of Gann angles at 2913.50 and 2921.25.

The key angle on the upside to overcome is 2921.25. This angle has been directing the market lower since May 1.

Bearish Scenario

A sustained move under 2875.25 will signal the presence of sellers. This could trigger a break into a Fibonacci level at 2855.00, followed by an uptrending Gann angle at 2851.50.

The trigger point for an acceleration to the downside is the 50% level at 2843.75. If this price level is taken out then look for the selling to extend into 2816.00.

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.