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E-mini S&P 500 Index (ES) Futures Technical Analysis – Testing Retracement Zone at 4669.75 – 4652.50

By:
James Hyerczyk
Published: Dec 16, 2021, 19:43 GMT+00:00

The direction of the March E-mini S&P 500 Index into the close on Thursday will likely be determined by trader reaction to 4669.75 and 4652.50.

E-mini S&P 500 Index

In this article:

March E-mini S&P 500 Index futures are trading lower late in the session on Thursday after hitting a record high earlier in the session. The technology sector is the biggest drag on the benchmark index.

Thursday’s sell-off comes a day after stocks rallied in the previous session as the Federal Reserve announced a more aggressive plan to wind down its asset purchases and hike rates in 2022.

At 19:24 GMT, March E-mini S&P 500 Index futures are trading 4661.50, down 39.00 or -0.83%. The S&P 500 ETF Trust ETF (SPY) is at $466.81, down $3.79 or -0.81%.

In stock related news, large tech names are lower with Apple falling more than 3% and major semiconductor stocks like AMD and Nvidia dropping 4.7% and 5.4% respectively. Meanwhile bank stocks helped dampen the bearish tone with shares of JPMorgan and Goldman Sachs up 2% and 1.5% respectively.

Daily March E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 4743.25 will reaffirm the uptrend. A move through 4596.25 will change the main trend to down.

The minor range is 4596.25 to 4743.25. The index is currently testing its retracement zone at 4669.75 to 4652.50.

The short-term range is 4485.75 to 4743.25. Its retracement zone at 4614.50 to 4584.00 is another potential downside target.

The main range is 4252.75 to 4743.25. If the main trend changes to down then its retracement zone at 4498.00 to 4440.00 will become the primary downside target area.

Short-Term Outlook

The direction of the March E-mini S&P 500 Index into the close on Thursday will likely be determined by trader reaction to 4669.75 and 4652.50.

Bearish Scenario

A sustained move under 4652.50 will indicate the selling pressure is getting stronger. This could trigger a late session break into 4614.50 to 4584.00. The latter is also a trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over 4669.75 will signal the return of buyers. This could trigger a late session short-covering rally into at least 4700.50.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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