E-mini S&P Bulls Facing Next Challenge at 4447.25 – 4530.50

June E-mini S&P 500 Index futures are trading higher late in the session on Wednesday, bolstered by a rebound in market-leading growth stocks as investors digested hot inflation data and a mixed bag of quarterly earnings.

At 20:22 GMT, June E-mini S&P 500 Index futures are at 4443.50, up 50.50 or +1.15%. The S&P 500 Trust ETF (SPY) is trading $443.40, up $5.11 or +1.17%.

Mixed Earnings Results

JPMorgan Chase & Co set the first-quarter earnings season off to an inauspicious start, reporting a 42% drop in quarterly profit. The downbeat results from the biggest U.S. lender sent its shares down 3.2%.

On the good side of the ledger, Delta Air Lines’ results beat expectations and it forecast a current-quarter return to profit due to “historically high” demand. Its 5.9% share jump was contagious; the broader S&P 1500 airline index surged 6.5%, according to Reuters.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4382.25 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. Its retracement zone at 4447.25 to 4530.50 is the next upside target area. Inside this zone is a minor pivot at 4506.75. This is also potential resistance.

The short-term range is 4094.25 to 4631.00. Its retracement zone at 4362.50 to 4299.25 is support. This area is controlling the near-term direction of the index.

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 the main 50% level at 4447.25.

Bullish Scenario

A sustained move over 4447.25 will indicate the presence of buyers. If this move is able to generate enough near-term momentum then look for the buying to possibly extend into 4506.75 to 4530.50.

Since the main trend is down, traders have to keep their eyes out for sellers. They may try to form a potentially bearish secondary lower top.

Bearish Scenario

A sustained move under 4447.25 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into yesterday’s low at 4382.25, followed by the short-term retracement zone at 4362.50 to 4299.25.