E-mini S&P 500 Index (ES) Futures Technical Analysis – Are Buyers Taking Breather Ahead of NFP?

June E-mini S&P 500 Index futures are trading nearly flat shortly before the cash market opening on Thursday after clawing back earlier losses amid massive monetary stimulus from the European Central Bank (ECB).

The ECB said Thursday it will increase its Pandemic Emergency Purchase Programme (PEPP) by 600 million Euro, bringing the program’s total to more than 1 trillion Euro.

At 12:12 GMT, June E-mini S&P 500 Index futures are trading 3106.75, down 11.00 or -0.35%.

In economic news, traders will be watching closely the Weekly Unemployment Claims report at 12:30 GMT. It is expected to show 1.820K people filed for unemployment benefits last week. This could be construed as bullish news because it would indicate another deceleration in the pace of claims.

Ahead of the opening, Exxon Mobil and JPMorgan are edging down about 1%, while Boeing is trading about 1.7% higher.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3129.50 will signal a resumption of the uptrend. A trade through 2903.75 will change the main trend to down.

A move through 3129.50 and a lower close will form a potentially bearish closing price reversal top. This won’t change the main trend to down, but it could lead to a 2 to 3 day correction.

The minor trend is also up. A trade through 2992.00 will change the minor trend to down. This will also shift momentum to the downside.

The major support is a Fibonacci level at 2930.25.

Daily Swing Chart Technical Forecast

Shortly before the cash market opening, the June E-mini S&P 500 Index futures are trading inside yesterday’s range. This indicates investor indecision.

A trade through 3129.50 will indicate the presence of buyers. This could trigger a surge into the next main top at 3131.00.

Taking out yesterday’s low at 3074.25 will make 3129.50 a new minor top. This will be the first indication that momentum is getting ready to shift to the downside.

Side Note

We could see a drop off in volume and volatility today as investors take to the sidelines ahead of Friday’s U.S. Non-Farm Payrolls report.

For a look at all of today’s economic events, check out our economic calendar.