E-mini S&P Strengthens Over 4718.25, Weakens Under 4690.50

March E-mini S&P 500 Index futures are trading higher shortly after the cash market opening on Wednesday. The benchmark index is being underpinned by consumer prices data that largely met expectations, easing some concerns about faster-than-expected interest rate hikes, with big technology stocks leading the advance.

At 15:17 GMT, March E-mini S&P 500 Index futures are at 4735.50, up 30.50 or +0.65%. The SPDR Gold Shares ETF (SPY) is trading $170.34, up $0.05 or +0.03%.

In economic news, the Consumer Price Index (CPI), an inflation gauge that measures costs across dozens of items, rose 7% in December from a year earlier, the fastest pace since June 1982. That was in line, with economist estimates, and stock market futures rose after the release.

Excluding food and energy, so-called core CPI was up 5.5% on the year, the biggest growth since February 1991.

On Tuesday, Fed Chairman Jerome Powell helped fuel the rally when he said the central bank would raise rates and end its asset purchases this year, but that policymakers had made no decision about the timing for tightening policy.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 4808.25 will change the main trend to up. A move through 4572.75 will signal a resumption of the downtrend.

The short-term range is 4520.25 to 4808.25. Its retracement zone at 4664.25 to 4630.25 is support.

The minor range is 4808.25 to 4572.75. The index is currently trading on the strong side of its retracement zone at 4690.50 to 4718.25, making it support.

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 the short-term Fibonacci level at 4718.25.

Bullish Scenario

A sustained move over 4718.25 will indicate the presence of buyers. If this creates enough upside momentum then look for a short-term surge to the upside. The daily chart indicates there is no resistance until 4808.25.

Bearish Scenario

A sustained move under 4718.25 will signal the presence of sellers. This could lead to a labored break with potential support a series of retracement levels. The first support is a minor 50% level at 4690.50. The second is the short-term 50% level at 4664.25. The third potential support level is the Fibonacci level at 4630.25.