E-mini S&P Heading for Test of Major Support at 4447.00

June E-mini S&P 500 Index futures are plunging on Wednesday, pressured by soaring interest rates as investors bet the Federal Reserve is about to aggressively tighten policy to combat inflation.

At 14:39 GMT, June E-mini S&P 500 Index futures are trading 4464.75, down 55.50 or -1.23%. The S&P 500 Trust ETF (SPY) is at $445.21, down $5.82 or -1.29%.

The 10-year Treasury jumped above 2.65% on Wednesday, hitting a three-year high and continuing its rapid climb this week. The rate ended Monday at 2.40%.

All Eyes on Fed Minutes

Investors await the minutes from the Fed’s most-recent meeting slated for release Wednesday afternoon, which could impact investors’ outlook and offer new clues on the Fed’s plan to reduce its balance sheet. It comes after comments from Fed officials drove stocks lower on Tuesday. The minutes come from last month’s meeting when the central bank raised rates and indicated six more hikes were coming this year.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down when sellers took out the last swing bottom at 4501.25. The new swing top is 4588.75.

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 zone is controlling the near-term direction of the market.

The short-term range is 4094.25 to 4631.00. Its retracement zone at 4362.50 to 4299.25 is the primarily downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index into the close on Wednesday is likely to be determined by trader reaction to 4447.00.

Bearish Scenario

A sustained move under 4447.00 will indicate the presence of sellers. If this move generates enough downside momentum then look for an eventual test of the short-term retracement zone at 4362.50 to 4299.25.

Bullish Scenario

A sustained move over 4447.25 will signal the presence of buyers. If this move creates enough upside momentum then look for an eventual retest of the Fibonacci level at 4530.50.