E-mini S&P 500 Index (ES) Futures Technical Analysis – Sustained Move Over 4658.00 Puts 4743.25 on Radar

March E-mini S&P 500 Index futures are up for a second session as the benchmark index continues to rebound from a three-day losing streak spurred by fears about the Omicron coronavirus variant.

Investors have been grappling with fears of the fast-spreading Omicron COVID variant, surging inflation and the end of ultra-easy monetary policy. Many are expecting lower returns and a bumpier road ahead after a strong year that saw the S&P 500 gain nearly 24%.

At 17:45 GMT, March E-mini S&P 500 Index is trading 4673.50, up 32.75 or +0.71%. The S&P 500 Trust ETF (SPY) is trading $466.45, up $3.39 or +0.73%.

In stock related news, Tesla shares jumped more than 7% after Elon Musk said in a podcast that he had reached his goal of selling 10% of his shares for tax reasons.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4743.25 will change the main trend to up. A move through 4520.25 will signal a resumption of the downtrend.

The main range is 4252.75 to 4743.25. Its retracement zone at 4498.00 to 4440.00 is support. It’s also controlling the near-term direction of the index.

The short-term range is 4485.75 to 4743.25. The market is currently trading on the strong side of its retracement zone at 4614.50 to 4584.00, making it support.

The minor range is 4743.25 to 4520.25. Crossing to the strong side of its retracement zone at 4658.00 to 4631.75 puts it in a position to challenge the all-time high at 4743.25.

Daily Swing Chart Technical Forecast

The direction of the March E-mini S&P 500 Index into the close on Wednesday is likely to be determined by trader reaction to 4658.00,

Bullish Scenario

A sustained move over 4658.00 will indicate the buying is getting stronger. If this move is able to generate enough upside momentum then look for a near-term test of 4743.25.

Bearish Scenario

A sustained move under 4658.00 will signal the presence of sellers. This could lead to a labored break with potential downside targets lined up at 4631.75, 4614.50 and 4584.00.