E-mini S&P 500 Index (ES) Futures Technical Analysis – Strong Over 2868.00, Weak Under 2841.00

June E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Thursday as investors bet on the U.S. economy opening soon and as oil prices rebounded. The benchmark index is being helped by sharp gains in big technology stocks such as Facebook, Amazon, Apple, Netflix and Alphabet, Google’s parent.

At 14:25 GMT, June E-mini S&P 500 Index futures are trading 2869.75, up 36.25 or +1.28%.

Energy stocks were among the biggest gainers as oil prices jumped nearly 10% on Thursday, bringing their gain for the week to more than 30%. If that weekly gain holds, it will be the biggest-ever for West Texas Intermediate futures.

The price action indicates that investors are shrugging off a report that showed another 3.17 million Americans filed for unemployment benefits last week, bringing the seven-week total to 33.5 million.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 2965.00 will signal a resumption of the uptrend. The main trend will change to down on a trade through the last swing bottom at 2717.25.

The minor trend is also up. A trade through 2771.00 will change the minor trend to down. This will confirm the downward shift in momentum.

The index is currently trading inside a major retracement zone at 2785.75 to 2930.25. This zone is controlling the longer-term direction of the stock index.

The retracement zone at 2765.50 to 2652.50 is support.

Traders have also been straddling a pair of 50% levels at 2841.00 to 2868.00 the past three days.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session on Thursday is likely to be determined by trader reaction to the 50% level at 2841.00 and the 50% level at 2868.00.

Bullish Scenario

A sustained move over 2868.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into the major Fibonacci level at 2930.25, followed by the main top at 2965.00.

Bearish Scenario

A sustained move under 2841.00 will signal the presence of sellers. This could trigger a break into a support cluster at 2785.75 to 2765.50.