June E-mini S&P 500 Index futures are trading higher shortly before the cash market opening as investors continued to price in a swift recovery for the economy from the impact of the coronavirus pandemic. Additionally, the early action suggests investors are looking beyond the civil unrest gripping the country.
Stocks tied to the reopening of states led the gains once again in premarket trading. American Airlines, United Airlines and Southwest all added more than 3%. Gap and Kohl’s shares gained about 2%, CNBC reported.
At 12:50 GMT, June E-mini S&P 500 Index futures are trading 3063.50, up 9.50 or +0.31%.
In a side note, when asked about Wall Street’s relation to the civil unrest in the U.S, CNBC’s Jim Cramer said, “At the end of the day, the market has no conscience. Investors are simply trying to make money, and that’s why they’re crowding into the stay-at-home economy stocks.”
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The early price action signaled a resumption of the uptrend. The main trend will change to down on a move through the nearest main bottom at 2903.75.
The minor trend is also up. It will change to down on a move through 2992.00. This will also shift momentum to the downside.
The main range is 3397.75 to 2174.00. Its retracement zone at 2930.25 to 2785.75 is controlling the longer-term direction of the index.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to Monday’s close at 3054.00.
A sustained move over 3054.00 will indicate the presence of buyers. Taking out the intraday high at 3075.50 will indicate the buying is getting stronger. This could generate the upside momentum needed to challenge the next major upside target at 3131.00.
A sustained move under 3054.00 will signal the presence of sellers. This will put the index in a position to form a potentially bearish closing price reversal top. If confirmed by follow-through selling on Wednesday, this could trigger the start of a 2 to 3 day correction.
The first downside target is the minor bottom at 2992.00, followed by the major Fibonacci level at 2930.25, followed by the main bottom at 2903.75.
This article was originally posted on FX Empire
More From FXEMPIRE:
- E-mini S&P 500 Index (ES) Futures Technical Analysis – Grinding Toward Next Objective at 3131.00
- Silver Price Daily Forecast – Silver Takes A Break After Recent Upside Move
- Why I Am Turning Cautious About Yesterday’s Stock Upswing
- U.S. Stocks Set To Open Higher As Investors Focus On Recovery
- S&P 500 is Grinding Higher
- Gold Price Forecast – Gold Markets Continue to Press Top of Triangle