E-mini S&P 500 Index (ES) Futures Technical Analysis – Expect Bullish Tone on Sustained Move Over 4010.00

June E-mini S&P 500 Index futures are trading higher shortly before the cash market opening as investors jumped aboard early following Friday’s solid U.S. Non-Farm Payrolls report. Traders are also responding positively to the accelerating vaccine rollout and President Joe Biden’s multi-trillion-dollar infrastructure proposal.

At 12:18 GMT, June E-mini S&P 500 Index futures are at 4031.50, up 21.50 or +0.54%.

In other news, shares of Tesla jumped 7.6% in the premarket, helping to underpin the benchmark index. Additionally, at 14:00 GMT, traders will get the opportunity to react to the latest ISM Services PMI data. The report is expected to show U.S. Non-Manufacturing PMI rose to 58.3, up from 55.3.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4038.00 will reaffirm the uptrend. The main trend will change to down on a move through 3843.25.

The minor range is 3843.25 to 4038.00. Its retracement zone at 3940.50 to 3917.50 is the nearest support.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to 4010.00.

Bullish Scenario

A sustained move over 4010.00 will indicate the presence of buyers. Taking out 4038.00 could trigger another acceleration to the upside since there is no resistance.

Bearish Scenario

A sustained move under 4010.00 will signal the presence of sellers. This will put the index in a position to form a potentially bearish closing price reversal top. If the move creates enough downside momentum then look for the selling to possibly extend into the minor 50% level at 3940.50.

Side Notes

A close under 4010.00 will form a closing price reversal top. If confirmed, then look for a 2 to 3 day correction with 3940.50 to 3917.50 the next likely downside target area.