E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 4147.00 Sets the Tone

June E-mini S&P 500 Index futures are trading nearly flat shortly before the cash opening on Thursday. Stocks rose on Wednesday during regular trading hours, snapping a two-day losing streak, as companies tied to the economy reopening led the way higher.

Traders are likely to respond to the latest economic data that will provide a snapshot of the ongoing economic recovery. Initial jobless claims will be released at 12:30 GMT, with economists expecting a print of 603,000, according to estimates from Dow Jones. Existing home sales data will be released at 14:00 GMT.

At 12:30 GMT, June E-mini S&P 500 Index futures are trading 4161.75, down 3.00 or -0.07%.

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 changes to down on a move through 3843.25.

The minor trend is also up. A trade through 4101.25 will change the minor trend to down. A move through 4167.25 will make 4110.50 a new minor bottom.

The minor range is 4183.50 to 4110.50. The index is currently trading on the strong side of its pivot at 4147.00. This level is potential support.

The short-term range is 3843.25 to 4183.50. If the minor trend changes to down then its retracement zone at 4013.25 to 3973.25 will become the primary target zone.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index on Thursday is likely to be determined by trader reaction to the minor pivot at 4147.00.

Bullish Scenario

A sustained move over 4147.00 will indicate the presence of buyers. Taking out a pair of highs at 4167.25 will indicate the buying is getting stronger. This could create the momentum needed to challenge the main top at 4183.50. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 4147.00 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into 4110.50. This is followed by the minor bottom at 4101.25. This is a potential trigger point for an acceleration to the downside.

The daily chart indicates there is plenty of room to the downside under 4101.25. The next major target area is the retracement zone at 4013.25 to 3973.25.

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