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 inching higher shortly before the cash market opening on Tuesday. Better-than-expected earnings from Home Depot and a rebound in tech shares are helping to underpin the benchmark.

At 12:15 GMT, June E-mini S&P 500 Index futures are trading 4166.75, up 9.00 or +0.22%. This is down from a pre-market high of 4179.50.

Home Depot was up 2% in early trading, while Walmart rose 1% after reporting. The major tech stocks were also higher, led by Facebook, Amazon, Apple and Microsoft. Nvidia gained 1%.

The key economic reports include Building Permits and Housing Starts.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher.

A trade through 4238.25 will signal a resumption of the uptrend. A move through 4029.25 will negate a closing price reversal bottom and signal the resumption of the downtrend.

The main range is 3843.25 to 4238.25. Its retracement zone at 4040.75 to 3994.00 is support. This area stopped the selling at 4029.25 on May 13.

The short-term range is 4238.25 to 4029.25. The index is currently trading on the strong side of its retracement zone at 4158.50 to 4133.75. This zone could become support.

The new minor range is 4029.25 to 4179.50. Its 50% level at 4104.25 is another potential downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to 4158.50.

Bullish Scenario

A sustained move over 4158.50 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a potential surge to the upside with 4238.25 the next likely upside target.

Bearish Scenario

A sustained move under 4158.50 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 4133.75 then into the pivot at 4104.25. Aggressive counter-trend buyers could come in on a test of this level. They are going to try to form a potentially bullish secondary higher bottom.

Side Notes

Continue to monitor the price action around 4133.75 to 4158.25. Remember than buyers want to clear this area so they can test 4238.25. Sellers are going to try to form a potentially bearish secondary lower top.

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