E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 4177.50 Set Tone into Close

June E-mini S&P 500 Index futures are trading modestly higher at the mid-session on Wednesday, but inside yesterday’s trading range, which tends to indicate investor indecision and impending volatility. Shares tied to the economic reopening supported the benchmark index, while investors appeared reluctant to add to long position ahead of Friday’s key report on inflation.

At 16:20 GMT, June E-mini S&P 500 Index futures are trading 4195.75, up 10.25 or +0.24%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but Tuesday’s closing price reversal top suggests momentum may be getting ready to shift to the downside.

A trade through 4212.75 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through 4179.25 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 4142.50 will change the minor trend to down. This will confirm the shift in momentum.

The minor range is 4142.50 to 4212.75. Its 50% level at 4177.50 is potential support.

The short-term range is 4055.50 to 4212.75. Its retracement zone at 4134.00 to 4115.25 is additional support.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index into the close will be determined by trader reaction to 4177.50.

Bullish Scenario

A sustained move over 4177.50 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 4212.75. This price is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 4177.50 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next targets clustered at 4142.50, 4134.00 and 4115.50. Since the main trend is up, buyers are likely to come in on a pullback into these levels.