E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 4189.00 Pivot Sets the Tone
June E-mini S&P 500 Index futures are inching higher on Monday after a week of largely upbeat earnings strengthened expectations of sustained profit growth for companies
Improving economic data, strong earnings, fiscal stimulus and the Federal Reserve’s ultra-accommodative stance have supported markets, pushing the S&P 500 to record levels last week.
Your capital is at risk
At 13:15 GMT, June E-mini S&P 500 Index futures are trading 4193.50, up 19.00 or +0.46%.
With more than half of S&P 500 companies having already reported results so far, profits are seen rising 46% in the first quarter, compared with forecasts of 24% growth at the start of April, according to IBES data from Refinitiv.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum shifted to the downside briefly late last week. A trade through 4211.00 will signal a resumption of the uptrend. The main trend changes to down on a move through 4110.50.
The minor trend is down. It turned down on Friday when sellers took out 4168.00. This is controlling the momentum. A trade through 4167.25 will indicate the selling pressure is increasing.
The minor range is 4211.00 to 4167.25. The index is currently straddling its pivot at 4189.00.
The short-term range is 4110.50 to 4211.00. Its 50% level at 4160.75 is potential support and a trigger point for an acceleration to the downside.
Daily Swing Chart Technical Forecast
The direction of the June E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to 4189.00.
Bullish Scenario
A sustained move over 4189.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for a breakout over 4211.00. There is no resistance, but we’ll keep watching for a closing price reversal top.
Bearish Scenario
A sustained move under 4189.00 will signal the presence of sellers. This could trigger a break into 4167.25, followed closely by 4160.75.
Taking out 4160.75 with strong selling volume could trigger an acceleration to the downside with 4110.50 the near-term target.
For a look at all of today’s economic events, check out our economic calendar.