E-mini S&P 500 Index (ES) Futures Technical Analysis – Strong Rebound Could Target 3759.50 – 3783.75

March E-mini S&P 500 Index futures are trading higher in the pre-market session on Monday as investors gear up for another week of market mayhem, with signs that the retail frenzy that pumped up the stock prices of the likes of GameStop Corp and AMC Entertainment Holdings Inc is spreading to other assets.

At 04:00 GMT, March E-mini S&P 500 Index futures are at 3717.75, up 12.50 or +12.50. This is up from an intraday low of 3656.50.

The benchmark index opened lower as a surge in speculative trading by retail traders continued to cause hedge funds to take off risk and worried about a market bubble.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the intraday low at 3656.50 will signal a resumption of the downtrend. The main trend will change to up on a trade through 3862.25.

The key support is the retracement zone at 3679.75 to 3636.75. This zone stopped the selling at 3656.50 earlier in the session.

The intermediate range is 3596.00 to 3862.25. The index is currently straddling its retracement zone at 3697.75 to 3729.25.

The short-term range is 3862.25 to 3656.50. Its retracement zone at 3759.50 to 3783.75 is the primary upside target. Taking out 3783.75 could trigger an acceleration to the upside.

Daily Swing Chart Technical Forecast

Based on the early price action the direction of the March E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to 3697.75.

Bullish Scenario

A sustained move over 3697.75 will indicate the presence of buyers. The next upside target is the 50% level at 3729.25. Sellers could come in on a test of this level.

If buyers can take out 3729.25 then look for the buying to possibly extend into 3759.50 to 3783.75. Since the main trend is down, sellers could also show up on a test of this zone.

Bearish Scenario

A sustained move under 3697.75 will signal the presence of sellers. This could trigger a quick break into 3679.75. If this level fails as support then look for the selling to possibly extend into the intraday low at 3656.50.

The key support is the Fibonacci level at 3636.75. Taking out this level could trigger a steep break into the next main bottom at 3596.00.