E-mini S&P 500 Testing Main RT Zone at 4447.00 – 4530.50

June E-mini S&P 500 Index futures closed slightly lower on Wednesday, dragged down by a poor performance in the technology sector. The tech sector was weighed down by bleak Netflix earnings after the company reported it had lost subscribers for the first time in over a decade.

A dip in U.S. Treasury yields provided some support but an intraday rally failed to last into the close. The benchmark 10-year yield moved lower after hitting three-year highs as buyers emerged. Early Wednesday, the yield reached 2.981%, the highest level since December 2018.

At 02:29 GMT, June E-mini S&P 500 Index futures are trading 4476.75, up 21.25 or +0.48%. On Wednesday, the S&P 500 Trust ETF (SPY) settled at $444.67, down $0.37 or -0.08%.

In economic news, investors got a fresh glimpse into the Federal Reserve’s economic outlook on Wednesday when it issued its “Beige Book” of economic conditions from late February to early April. The central bank reported the economy expanded at a moderate pace during that time, though business reported issues with high inflation and worker shortages.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4355.50 will signal a resumption of the downtrend. A move through 4588.75 will change the main trend to up.

The main range is 4800.00 to 4094.25. The index is currently trading inside its retracement zone at 4447.00 to 4530.50. This area is controlling the near-term direction of the market.

The minor range is 4631.00 to 4355.50. Its pivot at 4493.25 is resistance. It falls inside the main retracement zone.

The short-term range is 4094.25 to 4631.00. Its retracement zone at 4362.50 to 4299.25 is support. This zone stopped the selling at 4355.50 on Monday.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index early Thursday is likely to be determined by trader reaction to 4447.00.

Bullish Scenario

A sustained move over 4447.25 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into 4493.25, followed by the main Fibonacci level at 4530.50. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 4447.00 will signal the presence of sellers. If this generates enough downside momentum then look for a quick break into 4486.25. A failure at this level could extend the selling pressure into the support cluster at 4362.50 to 4355.50.