E-mini S&P 500 Index (ES) Futures Technical Analysis – Settled at Record Closing High on Friday

·2 min read

June E-mini S&P 500 Index futures hit a record closing high on Friday while registering gains for the week after U.S. jobs data eased concerns over prospects for rising rates.

U.S. jobs growth unexpectedly slowed in April, likely restrained by shortages of workers and raw materials, the Labor Department report showed.

Non-Farm Payrolls increased by only 266,000 jobs last month after rising by 770,000 in March, the Labor Department reported. Economists polled by Reuters had forecast payrolls advancing by 978,000 jobs.

The unemployment rate unexpectedly rose from 6.0% to 6.1% and Average Hourly Earnings surprised with a 0.7% jump.

All major S&P 500 sectors ended in the green with energy and real estate leading the advance. Both energy and materials hit fresh highs.

On Friday, June E-mini S&P 500 Index futures settled at 4225.25, up 31.00 or +0.73%.

Daily June E-mini S&P 500 Index
Daily June E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Friday when buyers took out the April 29 main top at 4211.00. The main trend will change to down on a trade through the last swing bottom at 4120.50.

The new minor range is 4120.50 to 4232.25. Its 50% level at 4176.25 is support.

Short-Term Outlook

Despite the lofty prices, the index doesn’t appear to be overbought although the Federal Reserve did warn about risk late last week. Friday’s plunge in Treasury yields breathed life into the index. Based on the price action in the financial futures markets, investors moved the chances of a Fed rate hike about three more months into the future.

Early Monday, a trade through 4232.25 will signal a resumption of the uptrend. The pivot at 4176.25 will move up as the index moves higher. A trade through this level will be an early sign of weakness.

This article was originally posted on FX Empire

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