E-mini S&P 500 Index (ES) Futures Technical Analysis – Holding Pivot at 3660.00 Supports Upside Bias

March E-mini S&P 500 Index futures are inching higher ahead of a shortened trading session on hopes of a gradual economic rebound, while Alibaba slumped after China launched an antitrust investigation into the e-commerce giant.

The benchmark index ended higher on Wednesday as investors pivoted to cyclical stocks that stand to benefit most during a recovery, encouraged by COVID-19 vaccine rollouts and passing of the coronavirus relief bill.

At 13:59 GMT, March E-mini S&P 500 Index futures are trading 3687.00, up 5.50 or +0.15%.

Investors also cheered reports that Britain and the European Union were on the cusp of striking a narrow Brexit trade deal.

Meanwhile, President Donald Trump on Wednesday vetoes a bipartisan defense policy bill and raised the prospect that the United States could face a government shutdown during a pandemic.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Monday. However, the lack of follow-through to the downside since then suggests the move was fueled by sell-stops rather than short-selling.

A trade through 3724.00 will change the main trend to up, while a move through 3596.00 will signal a resumption of the downtrend.

On Monday, the index also formed a potentially bearish closing price reversal top. A trade through 3596.00 will confirm the chart pattern.

The minor range is 3724.00 to 3596.00. Its 50% level or pivot at 3660.00 has been acting like support all week.

The second minor range is 3497.25 to 3724.00. Its retracement zone at 3610.50 to 3583.75 is support. This zone stopped the selling at 3596.00 on Monday.

Daily Swing Chart Technical Forecast

The direction of the March E-mini S&P 500 Index on Thursday will be determined by trader reaction to 3660.00, but due to the low volume, we’re not expecting much of a move today. Traders are move likely to straddle the pivot than breakout in either direction.