E-mini S&P 500 Index (ES) Futures Technical Analysis – Benchmark Index Notches Record High Close

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March E-mini S&P 500 Index futures achieved a record high close on Thursday, helped by a rise in oil prices, as optimistic investors were driven by positive economic data and more hope the impact of the Omicron coronavirus variant would have a minimal effect on the economy, even as COVID-19 case counts soar.

On Thursday, March E-mini S&P 500 Index futures settled at 4715.75, up 29.75 or +0.63%. The S&P 500 Trust ETF (SPY) finished at 470.57, up 2.88 or +0.62%.

Benchmark index stocks rose broadly on the last trading day of the week ahead of a long Christmas weekend in the United States, after data showing consumer spending rose 0.6% last month.

Additonally, the number of Americans filing new claims for unemployment benefits held below pre-pandemic levels last week, helping add to the gains.

But not all of the news was good. On the inflation side, the Federal Reserve’s closely watched core personal consumption expenditures index rose 0.6% in November from the month prior. Core PCE rose 4.7% year-over-year in November, higher than the 4.5% rate expected.

Daily March E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, the three day rally has put the index in a position to change the main trend to up early next week.

A move through 4743.25 will change the main trend to up. A move through 4520.25 will signal a resumption of the uptrend.

The minor range is 4743.25 to 4520.25. The index closed on the strong side of its retracement zone at 4658.00 to 4631.75, making it support.

The short-term range is 4485.75 to 4743.25. Its retracement zone at 4614.50 to 4584.00 is additional support.

The main range is 4252.75 to 4743.25. Its retracement zone at 4498.00 to 4440.00 is the major support controlling the near-term direction of the benchmark index.

Short-Term Outlook

Given the strong upside momentum on the close on Thursday, trader reaction to 4743.25 should set the tone early next week.