E-mini S&P 500 Index (ES) Futures Technical Analysis – Trading on Bullish Side of Key Retracement Zone

June E-mini S&P 500 Index futures are edging higher at the mid-session on Monday, boosted by a jump in the technology sector and shares benefitting the most from the economic reopening. Tech stocks rose after managing to shake off another rough period for cryptocurrencies over the weekend.

The S&P 500 Technology Sector was supported as Alphabet, Facebook and Microsoft all jumped more than 1%. Additionally, stocks benefiting from the economic reopening gained, led by shares of American Airlines, Carnival and United Airlines, which all traded at least 1% higher.

At 15:00 GMT, June E-mini S&P 500 Index futures are trading 4197.00, up 45.25 or +1.09%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out Friday’s high at 4185.00. A trade through 4055.50 will change the main trend to down.

The minor trend is also up. A trade through 4142.50 will change the minor trend to down and shift momentum to the downside.

The short-term range is 4238.25 to 4029.25. The index is currently trading on the strong side of its retracement zone at 4158.50 to 4133.75, making it support.

The main range is 3843.25 to 4238.25. Its retracement zone at 4040.75 to 3994.00 is controlling the near-term direction of the index. It stopped the selling at 4029.25 on May 13.

Daily Swing Chart Technical Forecast

The early price action indicates that the index has avoided forming a potentially bearish secondary lower top. Look for the upside momentum to continue as long as the index can hold over the 4158.50 to 4133.75 retracement zone.

A break under the Fibonacci level at 4158.50 will be the first sign of weakness. Crossing to the weak side of the 50% level at 4133.75 will indicate the selling pressure is getting stronger.

A close under 4151.75 will form a second consecutive closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.

Look for the bullish tone to continue as long as the index holds 4133.75. If this continues to generate enough upside momentum then look for a drive into the all-time high at 4238.25 over the near-term.