E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Hold 3880.25 to Sustain Upside Momentum.

March E-mini S&P 500 Index futures are trading higher late Monday after reaching an all-time high earlier in the session as investors made risky bets on hopes that a fiscal relief package would lead to a speedy economic recovery.

Sentiment was driven from the opening by U.S. Treasury Secretary Janet Yellen’s comment on Sunday that if Congress approves the $1.9 trillion plan, the country would get back to full employment next year.

At 20:05 GMT, March E-mini S&P 500 Index futures are trading 3897.25, up 17.00 or +0.44%.

A second wave of buying came in after oil prices rose to their highest in more than a year, lifting Marathon Oil Corp, Schlumberger NV, Exxon Mobil Corp, Chevron Corp and Occidental Petroleum Corp between 1% and 1.9% premarket.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out Friday’s high. A trade through 3656.50 will change the main trend to down.

The new short-term range is 3656.50 to 3903.00. Its 50% level at 3779.75 is the first support. This level will move up as the index moves higher.

The new intermediate range is 3596.00 to 3903.00. Its retracement zone at 3749.50 to 3713.25 is the next support zone. This zone will also move higher as buyers extend gains.

The main retracement zone support is 3700.00 to 3652.25.

Short-Term Outlook

A vertical rise in the market usually comes to a short-term end with a closing price reversal top. This makes Friday’s close at 3880.25 the key level to watch.

Bullish Scenario

A sustained move over 3880.25 will indicate the buying is getting stronger.

Bearish Scenario

A sustained move under 3880.25 will signal the return of sellers. A close under this level will form a closing price reversal top. If confirmed, this could lead to the start of a 2 to 3 day correction with 3779.75 the next major downside target.

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