June E-Mini S&P: Futures sold off sharply on Monday triggered by the failed rallies against 1320 to plunge to 1290. Prices rebounded off of 1290 which marked a 50% retracement of the 1241 to 1337 uptrend to close at 1301, down 18 handles on the day. We're maintaining a Bearish bias on the market, now until the 8-day downtrend line at 1315 is violated. The 10-day MA is about to cross the 20-day MA which would reinforce the Bearish outlook in the days ahead. Trade above 1315 neutralizes the Bears, but only a close above 1320 rekindles Bull trending forces.

For today, look to short rallies against S1 to S3 Resistance zones with Stops suggested 1 handle above each respective range. Take some risk off in the 129801296 S1 Support target zone while trailing Stops for a retest of 1290-1287 S2 Support. The 1290-1287 Support area is a critical area for a continuation of Bear sell offs, therefore, shorts should stand guard at that level, covering more positions. The downside break of 1287 triggers the next flush to 1280-1278 S3 to 1275 S4 Support targets.

On the upside, rallies today are possible, and even likely since 1290 (50% Fib) has already generated a rebound. However, all longs should be scaling out of positions against S1 to S3 Resistance targets today. Very light buying on dips can be done against each Resistance zone after it has been breached with 1 handle Stops below the low of each zone suggested. As mentioned above, only trade or a close above 1320 will sustain rallies.

Daily Chart:

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