E-mini S&P 500 Index (ES) Futures Technical Analysis – Fib Level at 2930.25 Controlling Direction

June E-mini S&P 500 Index futures are expected to open flat based on the pre-market trade after scoring its best session in six weeks on Monday amid rising optimism about a coronavirus vaccine.

Earnings are driving the early price action. Dow components Home Depot and Walmart are both making headlines.

Home Depot shares lost about 2% in premarket trading Tuesday after the home improvement retailer said net income last quarter dropped 10.7% due to extra costs related to the pandemic. Although the retailer also said sales increased by 7% for the period.

Meanwhile, Walmart shares gained more than 3% in premarket trading after the retailer reported soaring e-commerce sales in the first quarter.

At 13:28 GMT, the June E-mini S&P 500 Index is trading 2940.25, down 7.75 or -0.26%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out the previous main top at 2965.00. A trade through 2760.25 will change the main trend to down.

The main range is 3397.75 to 2174.00. Its retracement zone at 2785.75 to 2930.25 is controlling the longer-term direction of the index. This zone could become support.

The minor range is 2760.25 to 2976.25. Its 50% level at 2868.25 is potential support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2940.25, the direction of the June E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the major Fibonacci level at 2930.25.

Bullish Scenario

A sustained move over2930.25 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for a possible acceleration to the upside. The daily chart shows there is plenty of room to the upside with the main top at 3131.00 the next major target.

Bearish Scenario

A sustained move under 2930.25 will signal the presence of sellers. This could trigger a break into the minor 50% level at 2868.25.