E-mini S&P 500 Index (ES) Futures Technical Analysis – Testing Key Retracement Zone at 4079.00 – 4132.00

June E-mini S&P 500 Index futures are trading higher at the mid-session on Tuesday, as Citigroup led a surge in bank shares after Berkshire Hathaway revealed a big stake and strong retail sales in April eased some concerns about slowing economic growth.

At 16:57 GMT, June E-mini S&P 500 Index futures are trading 4065.25, up 60.50 or +1.51%. The S&P 500 Trust ETF (SPY) is at $406.18, up $6.08 or +1.52%.

Sectors and Stocks

Ten of the 11 major S&P sectors advanced, with financials and technology up 2% each.

Microsoft Corp, Apple Inc, Tesla Inc and Nvidia Corp gained between 1.5% and 4.8%, providing the biggest boost to the S&P 500 and the NASDAQ Composite.

Banks jumped 3.1%, with Citigroup climbing 7.9%, after Warren Buffet’s Berkshire Hathaway disclosed a nearly $3 billion investment I the U.S. lender.

US Economic Reports

U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants.

Another set of data showed industrial production accelerated 1.1% last month, higher than estimates of 0.5%, and followed by a 0.9% advance in March.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3855.00 will signal a resumption of the downtrend. A move through 4303.00 will change the main trend to up.

The minor range is 4303.00 to 3855.00. Its retracement zone at 4079.00 to 4132.00 is the first upside target.

The short-term range is 4509.00 to 3855.00. Its 50% level at 4182.00 is the next resistance level.

Daily Swing Chart Technical Forecast

Trader reaction to 4079.00 will determine the direction of the June E-mini S&P 500 Index into the close on Tuesday.

Bullish Scenario

A sustained move over 4079.00 will indicate the presence of buyers. This could trigger a late session surge into 4132.00. Look for sellers on the first test of this level. Overtaking it, however, could trigger a further rally into 4182.00.

Bearish Scenario

A sustained move under 4079.00 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into an intraday pivot at 3969.25. Counter-trend buyers could come in on the first test of this price. If it fails then look for the selling to possibly extend into the main bottom at 3855.00.