Yahoo Finance E-mini S&P 500 Index (ES) Futures Technical Analysis – Getting Close to Turning Higher for Year
June E-mini S&P 500 Index futures are expected to open sharply higher Friday, after the latest monthly U.S. jobs report came in much better than expected.
Employment stunningly rose by 2.5 million in May and the jobless rate declined to 13.3% according to data Friday from the Labor Department that was far better than economists had been expecting and indicated that an economic turnaround could be close at hand.
Economists surveyed by Dow Jones had been expecting payrolls to drop by 8.333 million and the unemployment rate rose to 19.5% from April’s 14.7%.
At 13:04 GMT, June E-mini S&P 500 Index futures are trading 3163.25, up 52.75 or +1.70%.
The May gain was by far the biggest one-month jobs gain in U.S. history since at least 1939.
The jump in employment almost perfectly mirrored the 2.7 million decrease in workers who reported being temporarily laid off.
Leisure and hospitality workers made up almost half the increase, with 1.2 million going back to work.
The news immediately drove up demand for travel and leisure stocks with American Airlines jumping 28.4% in premarket trading Friday. United Airlines shares surged 20.2%. The US Global Jets ETF is up 27% this week. Cruise-line operators such as Norwegian Cruise Line and Carnival both advanced more than 13% while Royal Caribbean gained 9.8%.
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 3131.00 main top. The next target is the December 31, 2019 close at 3231.00. The main trend will change to down on a trade through 2903.75.
A change in trend is not a concern, however, but a closing price reversal top should be a concern since this chart pattern is likely to form when investors finally decide to book profits.
The minor trend is also up. A trade through 2992.00 will change the minor trend to down and shift momentum to the downside.
The main range is 3397.75 to 3174.00. Its retracement zone at 2930.25 to 2785.75 is controlling the longer-term direction of the index. Its upper or Fibonacci level at 2930.25 is the nearest support.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session on Friday is likely to be determined by trader reaction to yesterday’s close at 3110.50.
Bullish Scenario
A sustained move over 3110.50 will indicate the presence of buyers with 3231.00 the next major upside target.
Bearish Scenario
A sustained move under 3110.50 will signal the presence of sellers and likely lead to the start of a near-term correction. However, it will not necessarily indicate a change in trend.
This article was originally posted on FX Empire
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