E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 4221.25 Sets the Tone

June E-mini S&P 500 Index futures are inching higher early Wednesday on low volume, but remained within striking distance of its all-time high. The benchmark index continues to trade in a tight range as investors await the next reading on inflation to gauge if higher price pressures are just temporary as the economy continues to rebound from the pandemic-induced recession.

At 14:06 GMT, June E-mini S&P 500 Index futures are trading 4229.50, up 4.25 or +0.10%.

Health care, communications and technology stocks led positive stocks shortly into the session, with drugmaker Merck up 1.8%, Twitter up 1.7% and Adobe up 1.5%. Fox Corp. was the best performer in the S&P 500 with an advance of 2.3%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 4236.75 will signal a resumption of the uptrend. A move through 4165.25 will change the main trend to down.

The minor range is 4165.25 to 4236.75. Its 50% level at 4201.00 is potential support.

The second minor range is 4142.50 to 4236.75. Its 50% level at 4189.50 is additional support.

The short-term range is 4055.50 to 4236.75. If the main trend changes to down then look for the selling to extend into its retracement zone at 4146.00 to 4124.75.

Daily Swing Chart Technical Forecast

The early inside move suggests the direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to 4221.25.

Bullish Scenario

A sustained move over 4221.25 will indicate the presence of buyers. The first upside target is 4236.75. Under normal trading conditions, this would be the trigger point for an acceleration into the record high at 4238.25.

Bearish Scenario

A sustained move under 4221.25 will signal the presence of sellers. This could trigger a break into a pair of 50% levels at 4201.00 and 4189.50. If the trading volume was average or better, taking out 4189.50 could trigger a further break into the main bottom at 4165.25.