E-mini S&P Looking to Form Support Base at 4362.50 – 4299.25

June E-mini S&P 500 Index futures are trading higher early Tuesday as investors prepare for one of the busiest weeks of corporate earnings season. The move follows a lackluster session to start the week as investors trickled in after the long Easter holiday weekend.

At 02:19 GMT, June E-mini S&P 500 Index futures are trading 4396.50, up 9.75 or +0.22%. On Monday, the S&P 500 Trust ETF (SPY) settled at $437.99, up $0.20 or +0.05%.

First-Quarter Earnings Season Ready to Heat Up

The major indexes have been grinding lower as the first-quarter earnings season heats up. Before the bell on Tuesday, Johnson & Johnson and insurance giant Travelers will report their latest results. Other notable reports include Hasbro, Lockheed Martin, and multiple mid-sized banks such as Citizens Financial.

In other news, investors will get an updated look at the housing market with housing starts and building permits for March.

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 minor trend is also down although a new minor bottom was formed at 4355.50 earlier today.

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

The main range is 4800.00 to 4094.25. Its retracement zone at 4447.25 to 4530.50 is resistance. A minor pivot at 4493.25 falls inside this zone.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index early Tuesday is likely to be determined by trader reaction to the short-term 50% level at 4362.50.

Bullish Scenario

A sustained move over 4362.75 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a surge into the main 50% level at 4447.25.

Overcoming 4447.25 will indicate the buying is getting stronger. This could lead to a test of the pivot at 4493.25, followed by the main Fibonacci level at 4530.50.

Bearish Scenario

A sustained move under 4362.75 will signal the presence of sellers. Taking out 4355.50 will indicate the downside momentum is getting stronger with the short-term Fibonacci level at 4299.25 the next target. This is a potential trigger point for an acceleration to the downside.