E-mini S&P 500 Index (ES) Futures Technical Analysis – Strong Over 2930.25, Weak Under 2867.25

June E-mini S&P 500 Index futures surged on Wednesday after Gilead Sciences said its experimental antiviral drug remdesivir helped improve symptoms in COVID-19 patients who were given the drug early than among those who were treated later, the company said.

The closely-watched drug has moved markets in the past few weeks and on Wednesday broader markets once again rose on the data and Gilead shares also jumped 9%.

At 13:50 GMT, June E-mini S&P 500 Index futures are trading 2915.50, up 48.25 or +1.68%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high. A trade through 2717.25 will change the main trend to up.

The index is up six days from the last main bottom which means investors should start watching for a closing price reversal top. If formed and confirmed, it could trigger the start of a 2 to 3 day correction.

The main range is 3397.75 to 2174.00. Its retracement zone at 2785.75 to 2930.25 is controlling the longer-term direction of the index.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2765.50 to 2652.50 is support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2915.50, the direction of the June E-mini S&P 500 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the main Fibonacci level at 2930.25.

Bullish Scenario

A sustained move over 2930.25 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the next main top at 3131.00 over the near-term.

Bearish Scenario

A sustained move under 2930.25 will signal the presence of sellers. Turning lower for the session will indicate the selling pressure is getting stronger. This could trigger a retest of a support cluster at 2785.75 to 2765.50.