E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3808.00, Weakens Under 3779.00The direction of the March E-mini S&P 500 Index into the close on Thursday is likely to be determined by trader reaction to 3808.00 and 3779.00.
March E-mini S&P 500 Index futures are trading nearly flat shortly after the cash market opening after recovering from earlier losses. Investors are nervous about a jump in U.S. bond yields that is weighing on risk appetite.
Investors are anticipating a rise in inflation with governments continuing to pump money into the global economy and as vaccination programs progress.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
At 14:42 GMT, March E-mini S&P 500 Index futures are trading 3815.50, down 1.25 or -0.03%.
Investors are also waiting to see if Federal Reserve Chairman Jerome Powell will address concerns about the risk of a rapid rise in long-term borrowing costs later in the day at 17:05 GMT. Traders are hoping for a volatile reaction at that time.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through the intraday low at 3777.50 will signal a resumption of the downtrend. The main trend will change to up on a move through 3934.50.
The index is currently straddling a pair of 50% levels at 3808.00 and 3779.00.
The short-term range is 3959.25 to 3777.50. Its 50% level at 3868.50 is a potential upside target. Since the main trend is down, sellers could come in on the first test of this level.
The major support is a retracement zone at 3728.25 to 3673.75. This zone is controlling the longer-term direction of the index.
Daily Swing Chart Technical Forecast
The direction of the March E-mini S&P 500 Index into the close on Thursday is likely to be determined by trader reaction to 3808.00 and 3779.00.
A sustained move over 3808.00 will indicate the presence of buyers. If this move generates enough upside momentum then 3868.50 will become the primary upside target.
A sustained move under 3808.00 will be the first sign of selling pressure. This could trigger a move into 3779.00 and 3777.50.
Taking out 3777.50 could trigger an acceleration to the downside with 3728.25 the next likely downside target.
For a look at all of today’s economic events, check out our economic calendar.