Buyers Tentative Despite E-mini S&P 500 Bullish Trend Change

June E-mini S&P 500 Index futures are trading higher on Wednesday, led by a jump in technology and financial stocks, as signs of progress in Ukraine-Russia peace talks lifted sentiment.

Traders got a little scare after the Federal Reserve announced its highly expected 25-basis point rate hike at 18:00 GMT, but the intraday sell-off was cooled after Fed Chair Powell started his post-meeting press conference.

At 14:07 GMT, the benchmark index is at 4295.50, up 41.75 or 0.98%. The S&P 500 Trust ETF (SPY) is trading $430.23, up $4.06 or +0.95%.

Ten of the 11 major S&P sectors rose in early trading, with financials up 2.1%. Morgan Stanley climbed 3.5%, as big banks gained in anticipation of the first rate increase since 2018.

Megacap names Apple Inc and Microsoft Corp added 1.3% each, providing the biggest boost to the S&P 500.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the last swing top at 4326.75. A move through 4129.50 will change the main trend to down.

The minor range is 4410.50 to 4129.50. The index is currently trading on the strong side of its pivot at 4270.00, making it support.

The short-term range is 4578.50 to 4094.25. Its retracement zone at 4336.50 to 4393.50 is the next upside target.

The intermediate retracement zone resistance comes in at 4447.25 to 4530.50.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index into the close on Wednesday is likely to be determined by trader reaction to 4336.50.

Bullish Scenario

A sustained move over 4336.50 will indicate the presence of buyers. This could trigger an acceleration into the short-term Fibonacci level at 4393.50, followed by the main top at 4410.50.

Bearish Scenario

A sustained move under 4336.50 will signal the presence of sellers. This could trigger a late session break into a pivot at 4270.00, followed by another pivot at 4234.50.

Taking out 4234.50 could trigger an acceleration to the downside with the primary downside target 4219.50.