E-mini S&P Pressured by Inflation, Economic Growth Worries

June E-mini S&P 500 Index futures are trading lower shortly after the cash market opening on Tuesday, as investors waited to see if earnings from Big Tech companies this week will provide the support needed to stem the current sell-off. The catalysts driving the price action are worries about high inflation and slowing global growth.

At 14:17 GMT, June E-mini S&P 500 Index futures are trading 4231.25, down 61.50 or -1.43%. The S&P 500 Trust ETF (SPY) is at $422.20, down $6.31 or -1.47%.

Of the 102 companies in the S&P 500 that reported earnings through Monday, 77.5% topped analysts’ profit expectations, according to Refinitiv data. In a typical quarter, 66% beat estimates.

Earnings News

United Parcel Service Inc gained 1.9% after it reported a rise in quarterly adjusted profit, while industrial giant 3M Co rose 0.9% after it topped profit estimates.

General Electric Co fell 3.5% after forecasting full-year earnings at the low end of its previous estimate, as persistent supply chain disruptions and rising freight and raw materials costs take a toll on the industrial conglomerate.

US Economic News

Core Durable Goods orders rose 1.1%, beating the forecast and previous read. The Conference Board’s Consumer Confidence report came in at 107.3, lower than the 108.5 forecast, but the previous report was revised higher. Finally, New Home Sales came in at 763K, lower than the estimate. The previous month was revised higher.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4195.25 will signal a resumption of the downtrend. A move through 4509.00 will change the main trend to up.

The short-term range is 4094.25 to 4631.00. Its retracement zone at 4299.25 to 4362.75 is resistance. The lower or Fibonacci level of this range stopped the buying earlier in the session.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index into the close on Tuesday will be determined by trader reaction to 4292.75.

Bearish Reaction

A sustained move under 4292.75 will indicate the presence of sellers. Taking out the minor bottom at 4195.25 will indicate the selling pressure is getting stronger. This could trigger an acceleration to the downside with 4129.50 the first downside target, followed by 4094.25.

Bullish Reaction

A sustained move over 4292.75 will signal the presence of buyers. Overtaking the Fibonacci level at 4299.25 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the main 50% level at 4362.75 the next major target.