E-mini S&P 500 Index

E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 4165.75, Weakens Under 4160.75

June E-mini S&P 500 Index futures are trading slightly higher, well off its high and threatening to test its low for the day, late in the session on Wednesday.

Earlier in the session, the S&P 500 technology sector was up about 0.9%. Six of the 11 major S&P 500 sector rose in early afternoon trading, with commodity-sensitive sectors including energy and materials rising 3.5% and 1.3%, respectively.

Defensive utilities fell 2.2% and real estate dropped 1.3%, leading sectoral declines.

At 20:21 GMT, June E-mini S&P 500 Index futures are trading 4160.75, up 2.50 or +0.06%.

Daily June E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 4211.00 will signal a resumption of the uptrend. A move through 4110.50 will change the main trend to down.

The minor trend is down. This is controlling the momentum. A trade through 4202.50 will change the minor trend to up. This will shift momentum to the upside.

The minor range is 4211.00 to 4120.50. The index straddled its pivot at 4165.75 throughout the session, suggesting a battle between bullish trend-traders and aggressive counter-trend traders.

The short-term range is 4110.50 to 4211.00. Its 50% level or pivot is 4160.75. This level was also straddled on Wednesday.

The main range is 3843.25 to 4211.00. If the main trend changes to down then look for the selling to possibly extend into its retracement zone at 4027.00 to 3983.75.

Short-Term Outlook

The minor direction of the index will be determined by trader reaction to the minor pivot at 4165.75.

The short-term direction of the index will be determined by trader reaction to the short-term pivot at 4160.75.

Look for an upside bias to develop on a sustained move over 4165.75 with 4120.50 and 4211.00 the next potential upside targets.

A downside bias is likely to develop on a sustained move under 4160.75. This could lead to a test of this week’s low at 4120.50, followed by the main bottom at 4110.50.

Side Notes

Trading between 4160.75 and 4165.75 for most of the session on Thursday will indicate investor indecision and impending volatility.

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Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.