E-mini S&P 500 Index (ES) Futures Technical Analysis – Strong Upside Momentum After Fibonacci Breakout

March E-mini S&P 500 Index futures jumped more than 1.5% on Tuesday with Amazon and Google-parent Alphabet set to wrap up results from the so-called FAANG group of stocks, while signs on progress on a large fiscal pandemic relief package also lifted the mood.

At 19:33 GMT, March E-mini S&P 500 Index futures are trading 3830.75, up 65.00 or +1.73%.

Alphabet, which will report the cost and operating profit of its Google Cloud business for the first time, added 1.5%, while retail behemoth Amazon.com Inc rose 1.4%.

All the major S&P sectors advanced, with economy-linked energy, financial and industrials gaining the most.

The S&P 500 posted 16 new 52-week highs and no new low, while the NASDAQ recorded 164 new highs and nine new lows.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher following the confirmation of Monday’s closing price reversal bottom.

The main trend will change to up on a move through 3862.25, while a trade through 3656.50 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The short-term range is 3862.25 to 3656.50. The index is trading on the strong side of its retracement zone at 3783.75 to 3759.25, putting it in a bullish position. The retracement zone is now support.

Additional support is a pair of retracement zones at 3729.00 to 3697.75 and 3679.75 to 3636.75. The latter stopped the selling at 3656.50 on Monday.

Short-Term Outlook

We’re looking for the upside bias to continue as long as the index remains above the Fibonacci level at 3783.75. A failure to hold this level will turn into 3759.25 into the major support.  A failure at this level will indicate that the buying is getting weaker and the sell is getting stronger.

The obvious upside target is the record high at 3862.25. Like the others, this is a potential trigger point for an acceleration to the upside with no target in mind since this is uncharted territory.

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