E-mini S&P 500 Index (ES) Futures Technical Analysis – Upside Momentum Building for Test of 3872.25

March E-mini S&P 500 Index futures are called higher based on the pre-market trade. The index is garnering support from stabilizing bond yields after last week’s sharp rise. The market is also being helped by a jump in European shares.

In the bond market, key yields fell from highs seen last week when market participants became wary that when economies re-open from coronavirus lockdowns a combination of massive government stimulus and pent-up consumer demand will cause inflation to accelerate.

At 13:17 GMT, March E-mini S&P 500 Index futures are trading 3851.50, up 42.25 or +1.11%.

The U.S. 10-year Treasury yield was down around 3 basis points at 1.429% at 12:07 GMT, having dropped from Thursday’s one-year high of 1.614% – although it did edge up slightly overnight.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3785.00 will signal a resumption of the downtrend. The main trend will change to up on a move through 3934.50.

The nearest support is a pair of 50% levels at 3807.75 and 3779.00.

The major support zone is 3728.2 to 3673.75.

The minor range is 3959.25 to 3785.00. Its 50% level at 3872.25 is the first upside target.

Daily Swing Chart Technical Forecast

Holding above 3807.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the pivot at 3872.25. This is a potential trigger point for an acceleration into the main top at 3934.50.

Taking out 3807.75 will signal the presence of sellers. This could lead to a labored break into 3785.00, followed by 3779.00. If this level fails then look for a potential acceleration into 3728.25 to 3673.75.