E-mini S&P 500 Index Testing Major RT Zone

June E-mini S&P 500 Index futures are trading higher on Tuesday as investors continue to pile into relatively cheap technology shares, while seemingly taking in stride a more aggressive tone by the Federal Reserve to raise the cost of borrowing to tame inflation.

At 18:57 GMT, June E-mini S&P 500 Index futures are trading 4500.75, up 48.50 or +1.09%. The S&P 500 Trust ETF (SPY) is at $449.12, up $4.73 or +1.06%.

Bank shares, meanwhile, rose tracking a rise in the benchmark 10-year Treasury yield to 2.36%. The S&P Banks Index gained 2.6%, powered by a 4.6% rise in Wells Fargo.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trade through the main top at 4476.50 reaffirmed the uptrend earlier in the session. A move through 4129.50 will change the main trend to down.

The main range is 4800.00 to 4094.25. The index is currently trading inside its retracement zone at 4447.00 to 4530.50.

The short-term range is 4578.50 to 4094.25. Its retracement zone at 4393.50 to 4336.25 is support.

Short-Term Outlook

The direction of the June E-mini S&P 500 Index into the close on Tuesday is likely to be determined by trader reaction to 4452.25.

Bullish Scenario

A sustained move over 4452.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible test of the Fibonacci level at 4530.50.

Sellers could come in on the first test of 4530.50, but overtaking it could trigger an acceleration to the upside with the main top at 4578.50 the next major target. This is also a trigger point for an even bigger breakout move.

Bearish Scenario

A sustained move under 4452.25 will signal the presence of sellers. The first downside target is the main 50% level at 4447.00. A failure to hold this price could trigger a steep break into the short-term retracement zone at 4393.50 to 4336.25.