E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 4158.50, Weakens Under 4133.75

June E-mini S&P 500 Index futures are trading higher shortly after the mid-session on Friday, and for a brief period of time was actually trading higher for the week. The buying was strong early in the session but a drop in the technology sector put a lid on those gains.

At 17:52 GMT, June E-mini S&P 500 Index futures are trading 4159.75, up 5.50 or +0.13%.

Gains were relatively broad across sectors on Friday. Cruise lines advanced after Carnival said some brands would resume cruises in July. Carnival added 1%.

Sentiment received a boost Friday when it was reported that a gauge for U.S. manufacturing activity surged to a record high this month.

Gains were capped after Bitcoin fell from its high after Chinese Vice Premier Liu He warned about bitcoin mining and trading behavior, saying tighter regulation is needed to protect the financial system.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up when buyers took out the previous main top at 4179.50. A move through 4055.50 will change the main trend to down.

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

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.

Short-Term Outlook

The direction of the June E-mini S&P 500 Index over the short-run will be determined by trader reaction to the short-term retracement zone at 4133.75 to 4158.50. If sellers take control then this area could become a potentially bearish secondary lower top. If buyers take control then this area could become key support as buyers try to drive the index to a new high.

Bullish Scenario

Look for a bullish tone to develop on a sustained move over 4158.50.

Bearish Scenario

A bearish tone is likely to develop on a sustained move under 4133.75.