E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 4205.75 to Sustain Upside Momentum

June E-mini S&P 500 Index futures are trading higher at the mid-session on Thursday after hitting a record high earlier in the day. The price surge occurred as investors shrugged off a key inflation report that showed a bigger-than-expected increase in consumer price pressures.

At 16:40 GMT, June E-mini S&P 500 Index futures are at 4237.25, up 18.75 or +0.44%.

Consumer prices for May accelerated at their fastest pace since the summer of 2008 amid the economic recovery from the pandemic-triggered recession, the Labor Department reported Thursday.

The consumer price index, which represents a basket including food, energy, groceries and prices across a spectrum of goods, rose 5% from a year ago. Economists surveyed by Dow Jones had been expecting a gain of 4.7%.

A separate report released Thursday showed that jobless claims for the week ended June 5 came in at 376,000, versus a Dow Jones estimate of 370,000. The total still marked the lowest of the pandemic era.

In stock-related news, UPS shares rose about 1% after an upgrade from JPMorgan. Shares of Boeing and Delta Air Lines were also higher.

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 4238.25. A trade through 4165.25 will change the main trend to down.

The minor trend is also up. A trade through 4205.75 will change the minor trend to down. This will also shift momentum to the downside.

The new minor range is 4165.75 to 4249.00. Its 50% level at 4207.00 is new support.

The short-term range is 4055.50 to 4249.00. If the main trend changes to down then look for the selling to possibly extend into its retracement zone at 4152.25 to 4129.50.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to 4218.50.

Bullish Scenario

A sustained move over 4218.50 will indicate the presence of buyers. The first upside target is the intraday high at 4249.00. This could be the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 4218.50 will signal the presence of sellers. The first downside target is the minor pivot at 4207.00. This is followed by the minor bottom at 4205.75. This is a potential trigger point for an acceleration to the downside with the next target the main bottom at 4165.25.