E-mini S&P 500 Index (ES) Futures Technical Analysis – Reaction to 3926.75 Could Set Late Session Tone

June E-mini S&P 500 Index futures are trading higher shortly after the cash market opening as technology stocks rebounded from a recent pullback that was ignited by a surge in bond yields, while Tesla shares gained after Cathie Wood’s Ark Invest set a three-year price target of $3,000.

At 14:03 GMT, June E-mini S&P 500 Index futures are trading 3914.75, up 15.00 or +0.38%.

The index is trading higher after recovering from early session weakness as investor sentiment turned positive after the fallout from Turkey’s latest currency debacle appeared to be contained.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top last Thursday.

A trade through 3978.50 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a move through 3710.50.

The minor range is 3978.50 to 3875.00. Its 50% level at 3926.75 is the first upside target.

The short-term range is 3710.50 to 3978.50. Its 50% level at 3844.50 is the next potential downside target.

Daily Swing Chart Technical Forecast

Today’s trade is all about momentum.

Bullish Scenario

If the early upside momentum continues then look for a move into the pivot at 3926.75. Since the main trend is down, sellers are likely to come in on the first test of this level. Overcoming it, however, could trigger an acceleration to the upside with 3978.50 the next major target.

Bearish Scenario

A sustained move under 3926.75 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into Friday’s low at 3875.00. Taking out this level could trigger a break into the 50% level at 3844.50.

For a look at all of today’s economic events, check out our economic calendar.