E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 4133.75, Weakens Under 4104.25

June E-mini S&P 500 Index futures are trading higher shortly before the mid-session on Thursday as technology shares rebounded and investors calmed following yesterday’s cryptocurrency meltdown.

Investors shrugged off Wednesday’s slightly hawkish comments in the minutes of the Fed’s April meeting, while sentiment was boosted by the latest jobless claims totaling a fresh pandemic-era low.

At 14:58 GMT, June E-mini S&P 500 Index futures are trading 4143.25, up 31.75 or +0.77%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but there are signs that momentum may be getting ready to shift to the upside.

A trade through 4179.50 will change the main trend to up. A move through 4029.25 will signal a resumption of the downtrend.

The minor trend is also down. A new minor bottom has formed at 4055.50.

The main range is 3843.25 to 4238.25. Its retracement zone at 4040.75 to 3994.00 is support. This zone is also controlling the near-term direction of the index.

The short-term range is 4238.25 to 4029.25. The index is currently testing its retracement zone at 4133.75 to 4158.50.

The minor range is 4179.50 to 4055.50. Its 50% level at 4104.25 is new support.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to 4133.75.

Bullish Scenario

A sustained move over 4133.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into 4158.50, followed by the main top at 4179.50.

A trade through 4179.50 will change the main trend to up. This could trigger an acceleration to the upside with 4238.25 the next likely upside target.

Bearish Scenario

A sustained move under 4133.75 will signal the presence of sellers. The first downside target is 4104.25. If this move generates enough downside momentum then look for the selling to possibly extend into 4055.50, followed closely by 4040.75.

The 50% level at 4040.75 is the last potential support before the 4029.25 main bottom. If this level fails then look for the selling to possibly extend into the main Fibonacci level at 3994.00. This is a possible trigger point for an acceleration to the downside.