E-mini S&P 500 Sellers Targeting 4530.50 Fibonacci Support

Investors are grappling with the simmering conflict in Ukraine and the likelihood for U.S. interest rate hikes as June E-mini S&P 500 Index futures trade lower immediately after the cash market opens.

Ahead of Friday's March U.S. Non-Farm Payrolls report, investors also expected the weakest quarter since the economic crash in 2020.

The June E-mini S&P 500 Index is trading 4587.00 at 13:39 GMT, down 9.00 or -0.20 percent. The S&P 500 Trust ETF (SPY) is currently trading at 457.56, down $1.14 or -0.25%.

Sellers are aiming to wipe out some of the gains made earlier in the week as a result of the peace talks. However, as Ukrainian forces prepared for further Russian attacks in the southeast, much of the euphoria surrounding the peace talks vanished. On April 1, the countries will resume online peace negotiations.

Walgreens Boots Alliance Inc. was a huge loser early in the session. It's down more than 6% as the business maintained its low-single-digit earnings growth outlook for 2022.

With crude oil down substantially, traders expect a wild trade in the S&P Energy Index. Exxon Mobil and Chevron both dipped about 2% in premarket trading, but have subsequently recovered the majority of their losses as crude oil prices recovered from a 5% drop.

Daily Swing Chart Technical Analysis

According to the daily swing chart, the major trend is up. The restart of the uptrend will be signaled by a trade through 4631.00. The major trend will turn to down if a transaction is made through 4129.50. Although this is exceedingly unlikely, a normal 50 percent to 61.8 percent correction is possible.

4800.00 to 4094.25 is the major range. The nearest support region is at 4530.50 to 4447.00, which is a retracement zone.

4094.25 to 4631.00 is the short-term range. Another support region is the retracement zone, which runs from 4362.50 to 4299.25.

Bullish Scenario

The presence of buyers will be indicated by a prolonged advance above 4578.50. We could witness a retest of the intraday high at 4631.00 if this can produce enough upside momentum.

If this level is breached, it will imply that the buying power is increasing. This would put the index on track to challenge the major peak from January 1 at 4730.50.

Bearish Scenario

The presence of selling will be signaled by a prolonged move below 4578.50. This might result in a dramatic break through the Fibonacci level of 4530.50.

Taking 4530.50 out of your account is a sign of weakness. This might lead to a much more severe break, with the primary downside objective being the main 50% level at 4447.00.

Check out our economic calendar for a complete list of today's economic happenings.

Trader reaction to the old top at 4578.50 will influence the direction of the June E-mini S&P 500 Index into Thursday's closing.