fundamental News - SP500

S&P 500 Index futures are trading nearly flat late Tuesday after touching another record high earlier in the session. The price action suggests investors may be taking a breather after the current surge was fueled by economic data that boosted hopes of a fast-paced recovery.

One catalyst underpinning prices was another dip in U.S. Treasury bond yields that eased fears of rising inflation. The 10-year rate dropped 6 basis points to 1.66% on Tuesday.

Additionally, shares of airlines and cruise lines continued their recent gains. United Airlines gained 1.6%, while Delta rose 2.7%. Carnival, Norwegian Cruise Line and Royal Caribbean all traded in the green.

Technical Analysis
The main trend is up according to the daily swing chart. A trade through the intraday high at 4076.00 will indicate the buying is getting stronger into the close.

The main trend will change to down on a trade through 3843.25. This is highly unlikely, but the index is up seven sessions from its most recent swing bottom, which puts it inside the window of time for a closing price reversal top.

This chart pattern won’t change the main trend to down, but if confirmed, it could trigger the start of a 2 to 3 day correction with 2959.50 to 3932.00 a potential downside target area. The direction of the June E-mini S&P 500 Index into the close will be determined by trader reaction to Monday’s close at 4067.75.

A sustained move over 4067.75 will indicate the presence of buyers. Taking out the intraday high at 4076.00 will indicate the buying is getting stronger late in the session. There is no resistance. A sustained move under 4067.75 will indicate the selling is greater than the buying at current price levels. This could trigger a downdraft into the close.