E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 4199.00 to Sustain Upside Momentum

June E-mini S&P 500 Index futures are trading higher at the mid-session with the benchmark index poised to post a gain for the week amid growing optimism over the U.S. economic recovery.

The cash market S&P 500 Index is up more than 1% for the week and sits less than 1% from the record. For the month of May, the S&P 500 is slightly higher.

At 16:57 GMT, June E-mini S&P 500 Index futures are at 4211.50, up $12.50 or +0.30%.

In economic news, a key inflation indicator, the core personal consumption expenditures index (PCE), rose 3.1% in April, faster than expectations of a 2.9% increase but not as hot as many on Wall Street had feared. Meanwhile, the savings rate remained elevated at 14.9% last month, while consumer spending rose 0.5%, in line with estimates.

Volume and volatility are on the low side with many major players sitting on the sidelines ahead of the long U.S. Memorial Day holiday weekend.

Daily June E-mini S&P 500 IndexDaily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 4217.50 will signal a resumption of the uptrend. The main trend will change to down on a move through 4055.50.

The minor trend is also up. A trade through 4177.75 will change the minor trend to down. This will shift momentum to the downside.

The minor range is 4142.50 to 4217.50. Its 50% level or pivot at 4180.00 is support.

The short-term range is 4055.50 to 4217.50. Its retracement zone at 4136.50 to 4117.25 is additional support.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index into the close on Friday is likely to be determined by trader reaction to 4199.00.

Bullish Scenario

A sustained move over 4199.00 will indicate the presence of buyers. Taking out 4217.50 will indicate the buying is getting stronger. The next potential upside target is the all-time high at 4238.25.

Bearish Scenario

A sustained move under 4199.00 will signal the presence of sellers. This could trigger a break into 4180.00, followed closely by the minor bottom at 4177.75. This price is a potential trigger point for an acceleration to the downside with another minor bottom at 4142.50 the next target, followed by 4136.50 to 4117.25.

Story continues

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire