E-mini S&P 500 Index (ES) Futures Technical Analysis – 3868.00 Support; 3934.50 Next Upside Target

March E-mini S&P 500 Index futures are trading higher late in the session on Wednesday after a report showed mild inflation, easing worries about rising prices that have jolted yields higher and unnerved equity investors. Meanwhile the widely watched 10-year Treasury auction of $38 billion in note was met with adequate demand.

At 19:05 GMT, March E-mini S&P 500 Index futures are at 3901.50, up 28.25 or +0.73%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3934.50 will change the main trend to up. The downtrend will resume on a move through 3720.50.

The minor range is 3959.25 to 3720.50. The market is currently trading on the strong side of its retracement zone at 3868.00 to 3839.75, making it support.

The short-term range is 3656.50 to 3959.25. Its 50% level at 3807.75 is another support level. This is followed by additional support at 3777.50.

Short-Term Outlook

The direction of the March E-mini S&P 500 Index over the short-term is likely to be controlled by trader reaction to 3868.00 to 3839.75.

Bullish Scenario

Look for an upside bias if buyers can hold above 3868.00. It this creates enough upside momentum then look for the rally to possibly extend into 3934.50 and 3959.25.

Bearish Scenario

A failure to hold 3868.00 will be the first sign of weakness. Look for a bearish tone to develop on a sustained move under 3839.75. This will be the first sign that a potentially bearish secondary lower top is forming.