E-mini S&P 500 Giving Back Earlier Gains Following GDP Miss

June E-mini S&P 500 Index futures are trading higher shortly after the cash market opening, following a strong earnings report from Meta Platforms, as the benchmark index sought to recover from this month’s sell-off.

At 14:28 GMT, the June E-mini S&P 500 Index is trading 4194.75, up 14.50 or +0.35%. The S&P 500 Trust ETF (SPY) is at $418.48, up $1.21 or +0.29%.

Shares of Meta surged about 16% following a beat on earnings, a sign that investors may see signs of relief in the beaten-up tech sector. Shares were down 48% on the year heading into the results.

Better Earnings Driving Market Sentiment

In addition to Meta’s gains, Qualcomm rose more than 8% on the back of strong earnings, while PayPal rose roughly 5% despite issuing weak guidance for the second quarter.

McDonald’s, Merck, Eli Lilly and Southwest were all higher Thursday after their quarterly reports.

On the downside, Caterpillar fell about 5% despite an earnings beat. Teladoc plunged more than 44% after reporting weaker-than-expected results.

Traders Shrug Off US Gross Domestic Product Miss

In economic news, U.S. Gross Domestic Product (GDP) unexpectedly declined in the first quarter by 1.4% from the year prior, compared with the 1% growth expected by economists surveyed by Dow Jones. Some investors brushed off the economic contraction, citing the jump in prices and trade deficit as contributing the most to the decline.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4136.75 will signal a resumption of the downtrend. A move through 4509.00 will change the main trend to up.

The minor trend is also down. A trade through 4303.50 will change the minor trend to up, shifting momentum to the upside.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to 4220.00.

Bullish Scenario

A sustained move over 4220.25 will indicate the presence of buyers. Taking out the intraday high at 4258.75 will indicate the buying is getting stronger. If this creates enough upside momentum then look for a surge into the resistance cluster at 4299.25 – 4303.50.

Bearish Scenario

A sustained move under 4220.00 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to extend into 4136.75.

Taking out 4136.75 will indicate the selling pressure is getting stronger. This could trigger a break into the next main bottom at 4129.50, followed by the low of the year at 4094.25.