June E-mini S&P 500 Index futures are trading higher at the mid-session on Wednesday. The bench mark index turned around after early session weakness threatened to dismantle the attempted recovery. The market began its recovery on news that President Donald Trump plans to delay the implementation of auto tariffs. The news, which was first reported by Bloomberg News, sent auto stocks higher. Additionally, three sources told CNBC the administration will delay those levies by up to six months.
At 16:24 GMT, June E-mini S&P 500 Index futures are trading 2851.00, up 11.75 or +0.42%. Earlier in the session, the index traded as low as 2815.00.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum shifted to the upside when buyers confirmed yesterday’s closing price reversal bottom.
A trade through 2799.75 will negate the closing price reversal bottom and signal a resumption of the downtrend. The trend isn’t close to turning up, but there is room for a 50% to 61.8% correction.
The minor trend is also down. A trade through 2893.00 will change the minor trend to up. This will also shift momentum to the upside.
The main range is 2726.50 to 2961.25. Buyers are trying to establish a support base at its retracement zone at 2843.75 to 2816.00.
The short-term range is 2961.25 to 2799.75. Its retracement zone at 2880.50 to 2899.50 is the first upside target. Since the main trend is down, sellers are likely to come in on a test of this zone.
Daily Technical Forecast
Based on the early price action and the current price at 2851.00, the direction of the June E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the main 50% level at 2843.75.
A sustained move over 2843.75 will indicate the presence of buyers. The next target is an uptrending Gann angle at 2861.75. This is a potential trigger point for an acceleration to the upside with the next targets the short-term 50% level at 2880.50 and the downtrending Gann angle at 2881.25.
A sustained move under 2843.75 will signal the presence of sellers. If this move attracts enough selling pressure then look for the break to extend into a cluster of levels at 2825.75, 2820.50 and 2816.00.
Crossing to the weak side of a downtrending Gann angle at 2801.25 will put the market in a bearish position.
This article was originally posted on FX Empire
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