E-mini S&P 500 Sellers Respecting 4510.50 Resistance

March E-mini S&P 500 Index futures are edging lower on Monday in a mostly lackluster trade after a week of volatile trading spurred on by mixed quarterly results from Big Tech, while Peloton jumped on reports of interest from potential buyers including e-commerce giant Amazon.

At 17:41 GMT, March E-mini S&P 500 Index futures are trading 4478.00, down 14.50 or -0.32%. The S&P 500 Trust ETF (SPY) is at $447.60, down $1.10 or -0.24%.

Of the 278 companies in the S&P 500 that have posted earnings as of Friday, 78.4% reported above analysts’ expectations, according to Refinitiv.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher.

A trade through 4586.00 will change the main trend to up. A move through 4212.75 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through 4263.25 will change the minor trend to down.

The short-term range is 4808.25 to 4212.75. Its retracement zone at 4510.50 to 4580.75 is resistance.

On the downside, a pair of retracement zones are support. They come in at 4419.25 – 4327.50 and 4266.00 – 4137.50.

Short-Term Outlook

The direction of the March E-mini S&P 500 Index into the close on Monday will be determined by trader reaction to 4510.50.

Bearish Scenario

A sustained move under 4510.50 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 4419.25.

If 4419.25 fails as support then look for a potential acceleration into 4327.50.

Bullish Scenario

A sustained move over 4510.50 will signal the presence of buyers. This could trigger a surge into the resistance cluster at 4580.75 to 4586.00.

Taking out 4586.00 will change the main trend to up and could trigger an acceleration to the upside with room to run to 4739.50.