Sellers Looking to Drive E-mini S&P into 4419.25 – 4327.50

March E-mini S&P 500 Index futures are trading lower late in the session on Thursday, dragged down by weakness in the tech sector, led by a steep drop in Facebook-parent Meta Platforms.

Meta Platforms shares plunged more than 25% after the company’s quarterly profit fell short of expectations. The company also issued weaker-than-expected revenue guidance for the current quarter. It was the biggest drop ever for the Facebook parent.

At 18:49 GMT, March E-mini S&P 500 Index futures are trading 4506.50, down 70.75 or -1.55%. The S&P 500 Trust ETF (SPY) is at $450.21, down $7.14 or -1.56%.

Other social media names followed Meta lower on Thursday. Snap shares slid 22% and Twitter dropped about 6%.

Daily Swing Chart Technical Analysis

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

A trade through 4739.50 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. 4586.00 is the new minor top, while 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. It stopped the buying on Wednesday at 4586.00.

The nearest support is an intermediate retracement zone at 4419.25 to 4327.50. This is followed by the main retracement zone at 4266.00 to 4137.50. The combination of these two zones creates a potential support cluster at 4327.50 – 4266.00.

Short-Term Outlook

The March E-mini S&P 500 Index ran into resistance as expected at 4510.50 – 4580.75. Since the main trend is down, sellers showed up on Wednesday to stop the rally at 4586.00. They are trying to form a potentially bearish secondary lower top. If successful, then look for a short-term pull-back into 4399.25 – 4327.50.

Overtaking 4580.75 will be a sign of strength. If this move creates enough upside momentum then look for a breakout over 4586.00 to trigger an acceleration into the next main top at 4739.50.