E-mini S&P 500 reaction at 4530.50 sets course on Monday

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E-mini S&P 500 Index futures for June closed better and moved closer to Friday’s session high as financial stocks rose after the benchmark Treasury yield hit an all-time high in almost three years. For the week, the benchmark index posted a strong gain of 1.8%, helped mainly by a strong performance from the technology sector.

On Friday, June 6, E-mini S&P 500 Index futures settled at 4536.50, up 24.00 or +0.53%. The S&P 500 Trust ETF (SPY) ended at $452.65, up $2.16 or +0.48%.

The S&P 500 financials sector gave the S&P 500 its strongest boost on Friday, rising 1.3%, while the technology and consumer discretionary sectors were the only two major sectors to end lower on the day. -the.

The utilities sector also rose sharply to a record high as investors favored defensive stocks as the Russian-Ukrainian war continued to escalate after a month. The sector ended up 1.5% on the day and 3.5% on the week, while the energy sector ended up 2.3% on the day and jumped more than 7% over the week following sharp increases in oil prices.

June E-mini S&P 500 Daily Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the main high at 4578.50 will reaffirm the uptrend.

A trade through 4129.50 will change the main downtrend. This is highly unlikely, but due to the prolonged rise in price and time, Monday’s session will start with the index within the time window for a potentially bearish closing price reversal top.

If confirmed, we could see the start of a correction for at least 2-3 days. This will not signal a change in trend.

The main range is 4800.00 to 4094.25. On Friday, the index closed slightly above its retracement zone at 4530.50 to 4447.00, making it a potential support.

The short-term range is 4578.50 to 4094.25. Its retracement zone at 4383.50 to 4336.25 is a potential support.

Short-term outlook

The next major move in the June E-mini S&P 500 Index will be determined by traders’ reaction to the main retracement zone between 4530.50 and 4447.00.

Expect the bullish bias to continue on a sustained move above 4530.50. A downside bias may develop on a sustained move below 4447.00.

Trading between 4530.50 and 4447.00 will set a neutral tone and signal investor indecision.

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