E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 2868.00, Weakens Under 2841.00

June E-mini S&P 500 Index futures are expected to open higher on Tuesday as investors increased bets on a smooth opening of the U.S. economy as more states lifted lockdown restrictions. Meanwhile, crude oil prices moved higher for a fifth straight trading session, helping to boost the energy sector.

Energy stocks like Marathon Petroleum were the biggest gainers in premarket trading Tuesday. Shares of companies that would benefit from a reopening of the economy, such as Starbucks, MGM and Ford, also gained in premarket trading.

At 13:29 GMT, June E-mini S&P 500 Index futures are trading 2863.25, up 38.00 or +1.35%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on April 30.

A trade through 2965.00 will negate the closing price reversal top, signaling a resumption of the uptrend. The main trend will change to down on a move through the last swing bottom at 2717.25.

The minor trend is also up. A trade through 2771.00 will change the minor trend to down. This will confirm the shift in momentum to down.

The main range is 3397.75 to 2174.00. The market is currently testing its retracement zone at 2785.75 to 2930.25. This zone is controlling the longer-term direction of the index.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2765.50 to 2652.50 is support.

Combining the two retracement zones creates a major support cluster at 2785.75 to 2765.50. This zone stopped the selling on Monday.

The first minor pivot is 2841.00. The second minor pivot is 2868.00.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the pair of 50% levels at 2868.00 and 2841.00.

Bullish Scenario

A sustained move over 2868.00 will indicate the presence of buyers. If this creates enough upside momentum then look for an acceleration into the main Fibonacci level at 2930.25, followed by the main top at 2965.00.

Bearish Scenario

A sustained move under 2868.00 indicate the presence of sellers. Breaking through 2841.00 could trigger an acceleration to the downside with the next target zone 2771.00 to 2765.50.