E-mini S&P 500 Index (ES) Futures Technical Analysis – Big Decision for Investors at 3113.75

June E-mini S&P 500 Index futures are set to open sharply higher on Friday, a day after they saw the biggest one-day dive in about three months on fears of a resurgence in coronavirus infections.

The pre-market rally was led by big U.S. lenders including Bank of America Corp., Citigroup, Inc. and Morgan Stanley, which rose between 3% and 5% after taking a hammering earlier this week.

At 13:31 GMT, June E-mini S&P 500 Index futures are trading 3075.25, up 65.00 or +2.16%.

Boeing Co. jumped 6.2%, but was still headed for a 17% fall this week. United Airlines, American Airlines, Norwegian Cruise Line jumped about 9% and 11% after leading losses on the S&P 500 on Thursday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3231.25 will signal a resumption of the uptrend. The main trend will change to down on a trade through 2903.75.

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.

On the downside, the major support zone is 2930.25 to 2785.75. The next level of support is the 50% level at 2995.75.

On the upside, the first resistance is a 50% level at 3067.50, followed by a second 50% level at 3113.75. This level is most important.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session on Friday is likely to be determined by trader reaction to the 50% level at 3067.50.

Bullish Scenario

A sustained move over 3067.50 will indicate the presence of buyers. This could lead to a test of 3113.75. Trader reaction to this level could determine the near-term direction of the market.

Aggressive counter-trend sellers are going to come in on a test of 3113.75. They are going to try to form a potentially bearish secondary lower top. Taking out this level, however, could trigger an acceleration to the upside with the next target this week’s high at 3231.25.

Bearish Scenario

A sustained move under 3067.50 will signal the presence of sellers. This could trigger a test of the potential support cluster at 2996.25, 2995.75 and 2992.00.

Taking out 2992.00 could trigger another plunge into 2930.25 and 2903.75. The main bottom at 2903.75 is a potential trigger point for an acceleration to the downside with 2785.75 to 2760.25 the next major target zone.