With the U.S. Federal Reserve due to issue its Interest Rate Statement Wednesday at 2:00 PM EST, S&P 500 futures have given back the early gains of Tuesday. At press time (6:30 PM EST), the June E-mini S&P 500 is in the process of retreating toward a key downside support level.

The Tuesday U.S. session was a whipsaw affair for the indices. Fizzled rallies were the final result for the DJIA and NASDAQ, as well as the S&P 500 SPX. Going into Wednesday’s session, it appears that an opportunity to join the prevailing bullish trend in U.S. stocks may set up nicely.

June E-mini S&P 500 Futures: Technical Outlook

On the daily chart, price of the June E-minis has rotated to the bear following the Wednesday electronic open. In the event price continues to fall, the current wave 38% retracement (2808.25) has a shot of coming into play ahead of tomorrow’s FED announcements.

Here are the levels to watch for the Wednesday session:

• Resistance(1): Spike High, 2858.75
• Support(1): 38% Retracement, 2808.25

Bottom Line: The long and intermediate-term trends are bullish for the S&P 500. If a chance to join the action from the daily 38% Retracement comes to pass, it isn’t a bad idea to go long.

As long as the Spike High (2858.75) remains the high watermark for this market, I will have buy orders queued up from 2809.75. With an initial stop at 2804.75, this trade yields 20 ticks on a 1:1 risk vs reward management plan.