E-mini S&P 500 Changes Trend to Up on Trade Through 4586.00

March E-mini S&P 500 Index futures are inching lower early Thursday as investors await the release of key U.S. inflation data later in the day. The report is expected to show headline inflation for January at its highest pace since 1982.

The benchmark index closed higher Wednesday, led by a surge in megacap growth stocks thanks to a pause in rising interest rates and upbeat earnings reports.

At 03:28 GMT, March E-mini S&P 500 Index futures are trading 4566.75, down 11.00 or -0.24%. On Wednesday, the S&P 500 Trust ETF (SPY) settled at $457.50, up $6.56 or +1.46%.

Late Wednesday, shares of Disney jumped 8% after hours after the company reported a quarterly earnings beat and a doubling of revenue from its parks, experiences and consumer products division. Uber also gained 5% in extended trading after reporting a revenue beat and a bounce back from omicron-induced challenges.

Looking ahead, Twitter, Coca-Cola and Kellogg are scheduled to report earnings before the opening bell Thursday. Expedia, Affirm and Zillow will report after the closing bell.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4586.00 will change the main trend to up. If the trend changes to up then 4438.50 will become the new main bottom.

The short-term range is 4808.25 to 4212.75. The index is currently trading inside its retracement zone at 4510.50 to 4580.75.

The intermediate support range is 4419.25 to 4327.50. The main support range is 4266.00 to 4137.50.

Daily Swing Chart Technical Forecast

The direction of the March E-mini S&P 500 Index early in the session on Thursday is likely to be determined by trader reaction to 4580.75.

Bullish Scenario

A sustained move over 4580.75 will indicate the presence of buyers. Taking out the main top at 4586.00 will change the main trend to up and could trigger an acceleration to the upside with 4739.50 the next major upside target.

Bearish Scenario

A sustained move under 4580.75 will signal the presence of sellers. The first downside target is the short-term 50% level at 4510.50.

Look for buyers on the first test of 4510.00, but if it fails then look for the selling to possibly extend into the minor bottom at 4438.50, followed closely by a 50% level at 4419.25. The latter is a potential trigger point for an acceleration to the downside.