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E-mini S&P 500 Index futures settled higher last week in a mostly lackluster trade. The market was supported early in the week by general optimism over US-China trade relations then pressured after President Trump said he didn’t like the deal. Later in the week, the market rallied again after the Fed released dovish minutes from its May Monetary Policy meeting. However, the index drifted lower late in the week on geopolitical concerns over North Korea after President Trump canceled a meeting with Kim Jong-un.
Last week, June E-mini S&P 500 Index futures settled at 2718.25, up 5.25 or +0.19%.
Weekly Swing Chart Technical Analysis
The main trend is up according to the weekly swing chart.
The main range is 2321.00 to 2883.25. Its retracement zone at 2602.00 to 2535.75 is the best support. Trading above this zone is helping to give the index its upside bias.
The intermediate range is 2883.25 to 2532.50. Its retracement zone at 2707.75 to 2749.25 is currently being tested. It has been acting like resistance for three weeks.
The new short-term range is 2591.25 to 2741.75. If there is a sell-off then its retracement zone at 2666.50 to 2648.75 will become the downside target. Since the main trend is up, buyers are likely to come in on a test of this zone.
Weekly Swing Chart Technical Forecast
Based on last week’s price action, the direction of the June E-mini S&P 500 Index this week is likely to be determined by trader reaction to the 50% level at 2707.75.
A sustained move over 2707.75 will indicate the presence of buyers. If this creates enough upside momentum then look for a move into the Fib level at 2749.25.
Taking out 2749.25 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with 2807.25 the next target.
A sustained move under 2707.75 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with next target zone 2666.50 to 2648.75. Since the main trend is up, buyers are likely to show up on a test of this zone.
Look for another sharp break if 2648.75 fails as support.
This article was originally posted on FX Empire