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Bulls in the E-mini S&P 500 Face a New Obstacle at 4447.25

Larissa Barlow

Apr 14, 2022 10:08

June E-mini S&P 500 Index futures are trading higher late Wednesday, boosted by a comeback in market-leading growth firms after investors absorbed strong inflation data and mixed quarterly profits.

Earnings Results Are Contradictory 

JPMorgan Chase & Co. kicked off the first-quarter earnings season with a 42 percent decline in quarterly profit. The largest US lender's disappointing results pushed its shares down 3.2 percent.

 

On the plus side, Delta Air Lines' profits exceeded forecasts, and the airline anticipated a current-quarter profit return due to "historically high" demand. According to Reuters, the 5.9 percent share increase was contagious; the larger S&P 1500 airline index increased 6.5 percent.

 

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Technical Analysis of the Daily Swing Chart

According to the daily swing chart, the primary trend is downward. A break of 4382.25 will indicate the resumption of the decline. A break of 4588.75 will reverse the overall trend to the upside.

 

4800.00 to 4094.25 is the primary range. The next target range on the upside is its retracement zone between 4447.25 and 4530.50. A minor pivot point is located inside this zone at 4506.75. This is also a possible source of resistance.

 

4094.25 to 4631.00 is the short-term range. Support is located in the retracement zone between 4362.50 and 4299.25. This zone is dictating the index's near-term direction.

Technical Forecast for the Daily Swing Chart

Early Thursday, the direction of the June E-mini S&P 500 Index is likely to be dictated by market reaction to the primary 50% level at 4447.25.

Scenario of Bullishness

A prolonged move over 4447.25 will signal that buyers are present. If this move gains sufficient near-term momentum, expect for buying to extend into 4506.75 to 4530.50.

 

Due to the fact that the primary trend is downward, traders must keep an eye out for sellers. They may attempt to produce a secondary lower top that is potentially bearish.

Scenario of the Bear

A continuous decline below 4447.25 indicates the existence of sellers. If this generates sufficient downside momentum, expect selling to extend towards yesterday's low at 4382.25, followed by the short-term retracement zone between 4362.50 and 4299.25.