E-mini S&P 500 Index (ES) Futures Technical Analysis – Big Upside Targets at 3399.50 and 3404.75

March E-mini S&P 500 Index futures are trading higher on Wednesday, but remain under their all-time high reached on Tuesday at 3392.50. The cash market S&P 500 Index rose to a record high earlier in the session, driven by a strong performance in the technology sector.

Apple shares contributed to the gains, trading 1.2% higher. The Technology Select SPDR ETF (XLK) – which tracks the S&P 500 tech sector – gained more than 1% to hit an all-time high.

The catalyst behind the market’s strength is the hope the coronavirus outbreak is being contained. China’s National Health Commission on Wednesday reported an additional 1,749 cases of the coronavirus nationwide. That’s the lowest number of newly confirmed cases since late January.

At 15:46 GMT, March E-mini S&P 500 Index futures are trading 3385.50, up 16.25 or +0.49%.

Volume is a little light early in the session, but it should pick up after the Fed releases the minutes from its late January monetary policy meeting. Traders are looking for guidance from the Fed on the future direction of interest rates and whether policymakers discussed the potential impact of the coronavirus on the U.S. economy.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 3392.50 will negate Tuesday’s closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a move through the last swing bottom at 3303.50.

A trade through 3355.25 will confirm yesterday’s closing price reversal top and shift momentum to the downside.

The minor trend is also up. A trade through 3348.50 will change the minor trend to down. This will also shift momentum to the downside.

Taking out 3392.50 will not only signal a resumption of the uptrend, but it will also make 3355.25 a new minor bottom.

The short-term range is 3303.50 to 3392.50. Its retracement zone at 3348.00 to 3337.50 is the first support zone.

Daily Technical Forecast

Given the early price action and the current price at 3385.50, we’re looking at a developing upside bias. If this creates enough upside momentum then look for buyers to extend the rally into 3392.50.

Taking out 3392.50 could trigger a surge into a pair of steep uptrending Gann angles at 3399.50 and 3404.75.

Overtaking 3404.75 will put the index in an extremely bullish position.

Taking out 3355.25 will be a sign of weakness. This should lead to a test of the uptrending Gann angle at 3351.50, followed closely by the minor bottom at 3348.50 and the retracement zone at 3348.00 to 3337.50.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.