E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3801.75, Weakens Under 3782.75
March E-mini S&P 500 Index futures are soaring shortly before the mid-session on Thursday in a move that seems to be tied to the release of U.S. economic data earlier in the session and following moves by several brokers to place restrictions on highly speculative stocks.
At 16:27 GMT, March E-mini S&P 500 Index futures are trading 3804.00, up 59.75 or +1.60%.
On the data front, Gross Domestic Product increased at a 4.0% pace in the fourth quarter, slightly below the 4.3% expectation from economists surveyed by Dow Jones.
The number of first-time filers for unemployment benefits rose less than expected last week. Jobless claims totaled 847,000 for the week ended January 23, the Labor Department reported Thursday. Economists polled by Dow Jones had expected first-time claims to total 875,000.
In other news, free-stock trading pioneer Robinhood and Interactive Brokers took steps to curb the wild trading activity in heavily shorted names like GameStop. This seems to have put Wall Street at ease, perhaps leading to the strong surge in prices.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 3862.25 will change the main trend to up. A move through 3703.50 will signal a resumption of the uptrend.
The short-term range is 3596.00 to 3862.25. Its retracement zone at 3729.00 to 3697.75 is support. This zone stopped the selling earlier today at 3703.50.
The minor range is 3862.25 to 3703.50. The index is currently straddling its retracement zone at 3782.75 to 3801.75. Trader reaction to this zone could determine the next major move in the market.
Buyers are going to try to overtake this zone in an effort to create the momentum needed to post a new record high. Sellers are going to try to form a potentially bearish closing price reversal top.
Daily Swing Chart Technical Forecast
Trader reaction to 3801.75 will determine the direction of the March E-mini S&P 500 Index into the close on Thursday.
A sustained move over 3801.75 will indicate the presence of buyers. If the move creates enough upside momentum then look for the rally to possibly extend into 3862.25.
A sustained move under 3801.75 will signal the presence of sellers. The first downside target is 3782.75.
If 3782.75 fails as support then look for the selling to possibly extend into a minor pivot at 3761.00, followed by 3729.00 and 3703.50.