S&P 500 Index futures are trading slightly better shortly before the
cash market opening on Monday and after touching a record high earlier
in the pre-market session.
Shares of energy stocks including Marathon Oil, Occidental
Petroleum and Devon Energy are helping to support the benchmark index as
gasoline futures rose after a ransomware attack forced the closure of
the largest U.S. fuel pipeline over the weekend.
Bigger tech stocks declined in early trading, however, weighing on
sentiment. They included Tesla, Oracle, Facebook and Alphabet.
Technical Analysis
The main trend is up according to the daily swing chart. A trade
through the intraday high at 4238.25 will signal a resumption of the
uptrend. The main trend will change to down on a move through 4120.50.
The new minor range is 4120.50 to 4238.25. Its 50% level at 4179.25
is the first downside target and potential support. This level will
move up as the index moves higher.
Due to the prolonged move up in terms of price and time, the
direction of the June E-mini S&P 500 Index the rest of the session
is likely to be determined by trader reaction to Friday’s close at
4225.25.
A sustained move over 4225.25 will indicate the presence of buyers.
Taking out 4238.25 will indicate the buying is getting stronger. Since
there is no resistance, we could see an acceleration to the upside.
A sustained move under 4225.25 will signal the presence of sellers.
If this move is able to create enough downside momentum then look for a
possible break into the pivot at 4179.25. Since the main trend is up,
look for buyers on the first test of this
level.
Taking out 4179.25 will indicate the selling is getting stronger.
This level is a potential trigger point for an acceleration into the
main bottom at 4120.50.
A close under 4225.25 will form a closing price reversal top. If this
chart pattern is confirmed on Tuesday then look for the start of a 2 to 3
day correction.
