E-mini S&P 500 Index (ES) Futures Technical Analysis – Buyers Need to Hold 3353.00 to Sustain Rally

March E-mini S&P 500 Index futures are trading higher shortly after the cash market opening as tensions ease over the potential damage to the U.S. economy by the spread of the coronavirus. Fears over the economic fallout from the outbreak of the deadly virus have also been offset by positive economic indicators. Jobs data released last week easily beat analyst expectations while U.S. manufacturing and services activity show signs of improvement.

At 14:37 GMT, March E-mini S&P 500 Index futures are at 3360.50, up 7.50 or +0.22%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend resumed earlier in the session when buyers took out the last main top at 3357.75. The main trend will change to down on a move through 3303.50.

A change in trend is not likely, however, the market is up seven sessions from its January 31 main bottom at 3212.75. This puts it in a position to post a potentially bearish closing price reversal top. This chart pattern won’t change the main trend to down, but if confirmed, it could trigger the start of a 2 to 3 day correction.

Daily Technical Forecast

Based on the early price action and the current price a t 3360.50, the direction of the March E-mini S&P 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to yesterday’s close at 3353.00.

Bullish Scenario

A sustained move over 3353.00 will indicate the presence of buyers. There is no upside target or resistance at current price levels.

Bearish Scenario

Breaking back under the previous top at 3357.75 will be the first sign of weakness. Trading below the previous close at 3353.00 will put the market in a position to form a closing price reversal top. This could create the downside momentum needed to challenge the nearest uptrending Gann angle at 3335.50.

Watch for a technical bounce on the first test of 3335.50, however, if it fails then look for a break into a pair of uptrending Gann angles at 3324.75 and 3319.50.