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

Citigroup led a rally in bank shares after Berkshire Hathaway disclosed a large holding, and robust retail sales in April relieved some fears about slowing economic growth, as June E-mini S&P 500 Index futures traded higher at mid-session on Tuesday.

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

Stocks and Sectors

Ten of the 11 main S&P sectors gained ground, with financials and technology both up 2%.

Microsoft Corp, Apple Inc, Tesla Inc, and Nvidia Corp all surged between 1.5 and 4.8 percent, boosting the S&P 500 and NASDAQ Composite the most.

After Warren Buffet's Berkshire Hathaway reported a roughly $3 billion investment in Citigroup, banks rose 3.1 percent, with Citigroup rising 7.9 percent.

Economic Reports from the United States

Consumers purchased cars and attended restaurants as retail sales in the United States grew 0.9 percent in April as supply improved.

Another set of statistics revealed that industrial output increased by 1.1 percent in February, above expectations of 0.5 percent, and then increased by 0.9 percent in March.

Technical Analysis of the Daily Swing Chart

According to the daily swing chart, the major trend is down. The return of the decline will be signaled by a trade through 3855.00. The major trend will turn to up if 4303.00 is broken.

4303.00 to 3855.00 is the minor range. The initial upward goal is the retracement zone from 4079.00 to 4132.00.

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