June E-mini S&P 500 Sellers Targeting 4130.25 to 4094.25

June E-mini S&P 500 Index futures are at their low of the session shortly before the close on Monday as oil prices fell sharply and traders monitored the latest developments from the Ukraine-Russian war. Investors are also shedding risky assets ahead of the Federal Reserve’s widely expected rate hike later this week.

At 19:55 GMT, June E-mini S&P 500 Index futures are trading 4162.25, down 30.25 or -0.72%. The S&P 500 Trust ETF (SPY) is at $417.22, down $2.85 or -0.68%.

The Fed is expected to raise its target fed funds rate by a quarter percentage point from zero at the end of its two-day meeting Wednesday. Investors are also looking to the central bank for its new forecasts for rates, inflation and the economy, given the uncertainty from the escalated geopolitical tensions, CNBC wrote.

In stock related news, Qualcomm, one of the top decliners in the S&P 500, lost 7%. Chipmakers were lower across the board, with Marvell Technology down 6% and Nvidia lower by 3%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4130.25 will signal a resumption of the downtrend. A move through 4410.50 will change the main trend to up.

The minor trend is also down. A trade through 4326.75 will change the minor trend to up. This will shift momentum to the upside.

The nearest resistance is a minor pivot at 4228.50. This is followed by a second pivot resistance level at 4270.50. The major resistance areas come in at 4336.50 to 4393.50 and 4447.25 to 4530.50.

Short-Term Outlook

The direction of the June E-mini S&P 500 Index early Tuesday is likely to be determined by trader reaction to the first pivot at 4228.50.

Bearish Scenario

A sustained move under 4228.50 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to extend into the first main bottom at 4130.25. Taking out this level will reaffirm the downtrend. This could trigger a further break into the second main bottom at 4094.25.

Bullish Scenario

Overcoming and sustaining a rally over 4228.50 will signal the presence of buyers. This could lead to a labored rally with potential resistance levels lined up at 4270.50, 4326.75 and 4336.38.