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Market news: Michael Marsh, a Goldman Sachs (GS.N) banker who has worked there for nearly 20 years, is about to retire.October 20: Building materials trading volume reached 97,700 tons, a 2.84% increase from the previous trading day. October 17: Building materials trading volume reached 95,000 tons, a 6.68% decrease from the previous trading day. October 16: Building materials trading volume reached 101,800 tons, an 11.38% increase from the previous trading day. October 15: Building materials trading volume reached 91,400 tons, a 3.38% decrease from the previous trading day. October 14: Building materials trading volume reached 94,600 tons, a 10.75% decrease from the previous trading day. Last weeks average: Building materials trading volume was 978,000 tons.On October 20th, Morgan Stanley strategist Michael Wilson noted that the stock market still faces unresolved risks, including trade tensions and slowing corporate earnings revisions, which will prompt investor caution in the short term. The S&P 500 has yet to recoup the losses incurred earlier this month amid escalating trade tensions. Meanwhile, the pace of earnings revisions (the ratio of upward to downward revisions by analysts) is slowing as earnings season enters its climax. Cracks in the credit market following the loan defaults of two regional banks have further exacerbated market anxiety. Wilson wrote in a report, "We must see clearer signs of easing trade tensions, stabilizing earnings per share forecasts, and more ample liquidity before declaring the risk of a further near-term correction definitively resolved." Despite his short-term caution, Wilson believes his "rolling economic recovery" theory holds true over the next 6-12 months.Market news: A 5.7 magnitude earthquake occurred in the Philippines.On October 20th, Monex Europe analysts noted that the euros near-term appreciation remains constrained by weak growth and fiscal concerns in the eurozone. The bank believes that if market risk appetite remains strong and interest rate differentials continue to tilt in the euros favor, the euro still has room for modest gains. However, the analysts emphasized that "persistent concerns about eurozone economic growth and fiscal pressures mean that sustained euro appreciation will be difficult until there are clearer signs of endogenous resilience," contrasting with Monexs relatively optimistic outlook for the eurozones medium- and long-term prospects.

E-mini S&P 500 Index: Tough to Sustain Rally without More Solid Support Base

Cory Russell

May 06, 2022 11:18

Investors are anxious that the Federal Reserve's rate rise would not be enough to contain inflation, and that the US central bank will have to take more harsh measures. After reversing all of yesterday's gains, June E-mini S&P 500 Index futures are trading down late in the afternoon on Thursday.


At 18:29 GMT, June E-mini S&P 500 Index futures were trading at 4125.50, down 169.75 or 3.95 percent. The S&P 500 Trust ETF has dropped 16.77 percent to $412.29.


On Wednesday, the Federal Reserve raised interest rates by half a percentage point, as expected, and Fed Chair Jerome Powell expressly ruled out a 75-basis-point increase at a future meeting.


Only 22 S&P 500 index members were in the green at 18:00 GMT. In addition, all 11 of the major S&P sectors are down, with consumer discretionary leading the pack.

The Daily Swing Chart's Technical Analysis

The primary trend is down, according to the daily swing chart. A move through 4056.00 will herald the resumption of the downtrend. If the price breaks through 4509.00, the primary trend will shift to the upside.


The little declining tendency is still present. Taking out 4303.50 will move the minor trend higher and transfer momentum to the upside.


The minor range is 4303.50 to 4056.00. The 50 percent mark is at 4179.75, which is the nearest resistance. The second closest resistance is a 50% level at 4343.50.

Prospects in the Short Term

The reaction of traders to 4179.75 will likely determine the direction of the June E-mini S&P 500 Index into Thursday's close.

Negative Predictions

A prolonged rise below 4179.75 will signal the presence of sellers. If enough negative momentum develops, expect the selling to extend towards the major bottom around 4056.00.


If 4056.00 is taken out, a quick test of the main bottom at 4020.50 is expected on May 12, 2021. This might be the turning point in a downward trend.

Optimistic Outlook

A sustained move over 4179.75 will show the presence of buyers. If there is enough upward momentum, look for a late-session burst over the resistance cluster around 4282.50 – 4303.50.

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