The benchmark E-mini S&P 500 Index is trading higher at the mid-session on Wednesday but the light trading volume is likely limiting gains. Despite the cash market closing at an all-time high on Tuesday, buyers seem a little tentative today about buying strength ahead of several key earnings reports later this week.
The index is likely being driven by the strength in the technology sector. The oil sector is feeling a little pressure after crude prices retreated in response to larger-than-expected weekly inventories.
At 15:18 GMT, June E-mini S&P 500 Index futures are trading 2937.00, down 1.00 or -0.03%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 2939.75 will signal a resumption of the uptrend. The main trend changes to down on a move through 2889.50. The major upside target is the all-time high at 2961.25.
Daily Technical Forecast
Based on the early price action and the current price at 2937.00, the direction of the June E-mini S&P 500 Index the rest of the trading session is likely to be determined by trader reaction to the steep uptrending Gann angle at 2937.50.
A sustained move over 2937.50 will indicate the presence of buyers. The next target is this week’s high at 2939.75. Overtaking this level could trigger an acceleration to the upside with the next target an uptrending Gann angle at 2957.75, followed by the September 21, 2018 main top at 2961.25.
A sustained move under 2937.50 will signal the presence of sellers. This won’t necessarily be bearish but if the selling pressure increases, there could be a further decline into the next uptrending Gann angle at 2913.50. Since the main trend is up, buyers are likely to come in on a test of this angle.
This article was originally posted on FX Empire
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