E-mini S&P 500 Struggling Inside 4336.25 – 4393.50 RT Zone

June E-mini S&P 500 Index futures are inching higher shortly after the cash market opening on Thursday, while hovering just below yesterday’s high. Investors are hoping to build upon the current two-day rally after the market changed its trend to up the previous session.

At 14:18 GMT, June E-mini S&P 500 Index futures are at 4358.25, up 8.75 or +0.20%. The S&P 500 Trust ETF (SPY) is trading $436.31, up $0.69 or +0.16%.

Investors seem to be a little tentative today as they digested the latest news out of Ukraine, which tended to lean to the bearish side. According to Bloomberg News, the Kremlin poured cold water over reports that indicated progress in peace talks between Russia and Ukraine. This news contradicts potentially bullish developments reported yesterday.

On Wednesday, the Financial Times reported that both countries had made “significant progress” on a peace plan and Russian withdrawal from Ukraine. That FT report helped stocks rally for a second day Wednesday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the next main top at 4410.50 will reaffirm the uptrend. A move through 4129.50 will change the main trend to down.

The short-term range is 4578.50 to 4094.25. The index is currently testing its retracement zone at 4336.25 to 4383.50.

The main range is 4800.00 to 4094.25. Its retracement zone at 4447.25 to 4530.50 is the primary upside target of this developing rally.

The minor range is 4129.50 to 4367.50. Its 50% level at 4248.50 is the nearest support. This level will move up as the index moves higher.

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 4336.25.

Bullish Scenario

A sustained move 4336.50 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into 4393.50.

Taking out 4410.50 will reaffirm the uptrend with 4447.25 to 4530.50 the next major target zone.

Bearish Scenario

A sustained move under 4336.25 will signal the presence of sellers. This could trigger an acceleration to the downside with 4248.50 the minimum downside target.