FXEMPIRE
All
Ad
Advertisement
Advertisement
James Hyerczyk
Add to Bookmarks
E-mini S&P 500 Index

June E-mini S&P 500 Index futures are trading at their low of the session shortly before the cash market close on Wednesday. Weakness in the technology sector is behind most of the selling pressure. The catalyst behind the move was key inflation data that showed higher-than-expected price measures.

At 19:33 GMT, June E-mini S&P 500 Index futures are at 4059.00, down 87.25 or -2.10%.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The selling intensified after the S&P 500 fell below Tuesday’s low, a level traders were watching closely because of the intraday rebound one day ago. Once the S&P fell below that low about an hour into the trading day, the benchmark dropped even further.

Shortly before the cash market opening, the government released a report that showed consumer inflation accelerated at its fastest pace since 2008 last month with the consumer price index (CPI) spiking 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. The monthly gain was 0.8%, versus the expected 0.2%.

Daily June E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down when sellers took out the swing bottom at 4120.50. A move through 4238.25 will change the main trend to up.

Even before the trend changed to down, the momentum had shifted to the downside with the formation of a potentially bearish closing price reversal top on Monday. When confirmed, this chart pattern tends to trigger a 2 to 3 day correction. So this sell-off is not really a surprise.

The short-term range is 3843.25 to 4238.25. Its retracement zone at 4040.75 to 3994.00 is the primary downside target area.

Advertisement

Short-Term Outlook

Investors will have a big decision to make on a test of 4040.75 to 3994.00. We expect to see aggressive counter-trend buyers come in on a test of this area. This could trigger the start of a 50% to 61.8% retracement of the plunge from 4238.25.

If 3994.00 is taken out with conviction then look for the selling to possibly trigger another acceleration to the downside with the next major target coming in at 3843.25.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker