E-mini S&P 500 Index (ES) Futures Technical Analysis – Trade Through 4101.25 Changes Minor Trend to Down

June E-mini S&P 500 Index futures are trading sharply lower late in the session on Tuesday as a spike in coronavirus cases globally hit travel stocks, while Boeing slid on the unexpected departure of its finance chief.

Seven of the 11 S&P indexes were down, with investors piling into defensive stocks that are considered relatively safe during times of economic uncertainty:  real estate, utilities, consumer staples and healthcare.

At 18:44 GMT, June E-mini S&P 500 Index futures are trading 4116.50, down 39.00 or -0.94%.

Shares of airline operators and cruise liners including JetBlue Airlines, American Airlines, Norwegian Cruise Line and Carnival Corp, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4183.50 will signal a resumption of the uptrend. The main trend will change to down on a trade through 3843.25.

The minor trend is also up. A trade through 4101.25 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 4101.25 to 4183.50. Its 50% level or pivot is 4142.50.

The short-term range is 3843.25 to 4183.50. If the minor trend changes to down then look for the selling to possibly extend into its retracement zone at 4013.25 to 3973.25.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index into the close on Tuesday will be determined by trader reaction to the pivot at 4142.50.

Bearish Scenario

A sustained move under 4142.25 will indicate the presence of sellers. This could trigger a late session break into the minor bottom at 4101.25.

Buyers could come in on the first test of 4101.25. However, if it fails then look for a potential acceleration to the downside with 4013.25 the initial downside target.

Bullish Scenario

A sustained move over 4142.50 will signal the presence of buyers. If this move creates enough upside momentum then look for a potential retest of the record high at 4183.50.