E-mini S&P 500 Index (ES) Futures Technical Analysis – Close over 3693.75 Keeps Upside Momentum Intact

March E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Thursday on increased optimism over a coronavirus stimulus bill, and as investors ignored an unexpected rise in weekly jobless claims, which pointed to further economic stress from the COVID-19 pandemic.

At 15:49 GMT, March E-mini S&P 500 Index futures are trading 3711.00, up 17.25 or +0.50%.

Technology stocks were among the best performing S&P sectors, with utilities and materials shares, primed to benefit from more stimulus, also making large gains.

Outsourcing services provider Accenture rose 7.4% after it raised its annual sales forecast and beat quarterly revenue estimates as an extended work-from-home period boosted its digital, cloud and security services.

General Mills Inc rose 1.1% after it beat second-quarter profit estimates, boosted by sales of its pet foods and baking products.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high. The futures contract also hit a record high.

The main trend will change to down on a trade through the previous main bottom at 3620.75.

Daily Swing Chart Technical Forecast

The direction of the March E-mini S&P 500 Index into the close is likely to be determined by trader reaction to yesterday’s close at 3693.75.

Bullish Scenario

A sustained move over 3693.75 will indicate the presence of buyers. This could trigger an acceleration to the upside since there is no resistance.

Bearish Scenario

A sustained move under 3693.75 will signal the presence of sellers. This could trigger a break into 3669.00. If it fails then look for the selling to possibly extend into 3620.75.

A close under 3683.75 will produce a closing price reversal top. If confirmed, this could trigger a 2 to 3 day correction. In this case, a change in trend is also possible along with a 50% to 61.8% correction of the rally from 3216.25.

For a look at all of today’s economic events, check out our economic calendar.