E-mini S&P 500 Index (ES) Futures Technical Analysis – Momentum Turns Lower Under 4101.25

June E-mini S&P 500 Index futures hit another record high on Thursday as easing inflation concerns boosted demand for richly valued technology stocks, while upbeat earnings reports and strong March retail sales raised hopes of a broader economic rebound.

The S&P Information Technology and Communication Services Indexes, which include Apple Inc, Microsoft Corp and Facebook, Inc, led gains after underperforming in March.

At 19:54 GMT, June E-mini S&P 500 Index futures are trading 4164.25, up 46.25 or +1.12%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Thursday when buyers took out the previous high at 4144.00.

The main trend changes to down on a trade through 3843.25. This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is currently inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A trade through 4101.25 will change the minor trend to down. This will shift momentum to the downside.

The new main range is 3843.25 to 4166.50. Its retracement zone at 4004.75 to 3966.75 is the next major downside target and potential support zone.

Short-Term Outlook

Since there is no resistance, we’re going to continue to say “a trend is motion is likely to remain in motion until acted upon by a stronger force.” Just like physics. The best sign that the buying is getting weaker, or the selling is getting stronger will be a closing price reversal top.

Even if a closing price reversal top is formed, it won’t signal a change in trend, but if confirmed, it could lead to a 2 to 3 day correction.

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