E-mini S&P 500 Index Up

E-mini S&P 500 Index (ES) Futures Technical Analysis – Sustained Move Over 3782.50 Signals Strong Buying

March E-mini S&P 500 Index futures are trading higher on Tuesday after upbeat earnings from big U.S. banks and Halliburton, while investors awaited a speech from U.S. Treasury Secretary nominee Janet Yellen that is expected to advocate hefty fiscal spending.

Bank of America topped fourth-quarter profit estimates and joined JPMorgan, Citigroup Inc and Wells Fargo & Co in releasing some cash reserves to cover for coronavirus-driven loan losses, underscoring its confidence in the economy.

At 14:30 GMT, March E-mini S&P 500 Index futures are trading 3792.25, up 23.75 or +0.69%.

Daily March E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. A trade through 3824.50 will signal a resumption of the uptrend. A move through 3596.00 will change the main trend to down.

The minor trend is down. This is controlling the momentum. A trade through 3740.50 will indicate the selling is getting stronger. Taking out 3817.75 will change the minor trend to up and shift momentum to the upside.

The minor range is 3824.50 to 3740.50. Its 50% level at 3782.50 is currently being tested.

The second minor range is 3652.50 to 3824.50. Its 50% level at 3738.50 provided support earlier in the session.

The short-term range is 3596.00 to 3824.50. Its 50% level at 3710.25 is another potential support level.

Daily Swing Chart Technical Forecast

The direction of the March E-mini S&P 500 Index into the close is likely to be determined by trader reaction to 3782.50.

Bullish Scenario

A sustained move over 3782.50 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the minor top at 3817.75, followed by the main top at 3824.50.

Bearish Scenario

A sustained move under 3782.50 will signal the presence of sellers. This could lead to a retest of the intraday low at 3740.50, followed by the 50% level at 3738.50. If this level fails then look for the selling to possibly extend into 3710.25. This is a potential trigger point for an acceleration into another 50% level at 3660.75.

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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.