E-mini S&P 500 Index (ES) Futures Technical Analysis – Main Trend Changed to Down When 3804.75 Failed

March E-mini S&P 500 Index futures are trading nearly flat shortly before the cash market close. Earlier in the session, the benchmark index traded down to its lowest level since February 2 as traders continued to react to the rotation out of high-flying tech stocks into more value-oriented companies. Wicked swings in U.S. Treasury yields also contributed to the market’s volatility.

At 20:30 GMT, March E-mini S&P 500 Index futures are at 3827.50, down $0.50 or -0.01%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend turned down earlier today when sellers took out the previous main bottom at 3804.75. A move through 3934.50 will change the main trend to up.

The short-term range is 3656.50 to 3959.25. The index straddled its 50% level at 3807.75 after finding support on it earlier in the week.

The next support is another 50% level at 3779.00. This is followed by the most import value area and potential support zone at 3728.25 to 3673.75.

On the upside, potential 50% retracement level resistance comes in at 3859.75 to 3872.25.

Daily Swing Chart Technical Forecast

With the index straddling yesterday’s close at 3828.00, it’s difficult to predict how it will finish. If trend traders retake control then look for sellers to make another run at 3807.75 then 3779.00. If the latter fails then look for an acceleration to the downside with 3728.25 the next major target.

If counter-trend buyers regain control then look for a late session short-covering rally into the potential resistance cluster at 3859.75 to 3872.25.