E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 3868.00, Weakens Under 3839.75

March E-mini S&P 500 Index futures are trading higher shortly after the cash market opening. Investors are buying up beaten-down technology stocks as U.S. Treasury yields retreat from one-year highs.

During the pre-market session, Tesla Inc advanced about 4%, while Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft jumped about 2% each.

At 14:33 GMT, March E-mini S&P 500 Index futures are at 3858.50, up 39.25 or +1.03%.

U.S. 10-year Treasury bond yields eased to 1.54%, 6 basis points lower than its highest level this year. Longer-dated yields have jumped over the last month as investors price in a faster-than-expected economic rebound and higher inflation.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3934.50 will change the main trend to up. Taking out 3720.50 will signal a resumption of the uptrend.

The minor range is 3959.25 to 3720.50. The market is currently testing its retracement zone at 3839.75 to 3868.00. Trader reaction to this zone will set the tone.

On the downside, support is a pair of 50% levels at 3807.75 and 3777.50.

Daily Swing Chart Technical Forecast

The direction of the March E-mini S&P 500 Index into the close on Tuesday will be determined by trader reaction to 3839.75 and 3868.00.

Bullish Scenario

A sustained move over 3868.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for the index to challenge the main top at 3934.50.

Bearish Scenario

A sustained move under 3839.75 will signal the presence of sellers. This could trigger a break into the pair of 50% levels at 3807.75 and 3777.50.

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