March U.S. E-mini S&P 500 Index futures are trading higher late in the session on Tuesday with the technology sector leading the advance as investors appeared relieved that Federal Reserve Chair Jerome Powell’s testimony to Congress did not include any major surprises.
After falling just under 1% earlier in the session, the interest rate sensitive technology sector bounced back to rally almost 1% and provide the S&P its biggest boost.
Federal Reserve Chair Jerome Powell, in a congressional hearing that pointed to his likely confirmation for a second term as head of the U.S. central bank, said the economy should weather the current COVID-19 surge with only “short-lived” impacts and was ready for the start of tighter monetary policy.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 4572.75 will signal a resumption of the downtrend. A move through 4808.25 will change the main trend to up.
The short-term range is 4520.25 to 4808.25. Its retracement zone at 4664.25 to 4630.25 is support. It stopped the selling earlier in the session.
The minor range is 4808.25 to 4572.75. Its retracement zone at 4690.50 to 4718.25 is currently being tested.
The short-term direction of the March E-mini S&P 500 Index is likely to be determined by trader reaction to 4690.25 to 4718.25.
Since the main trend is down, look for sellers on a test of this area. They are going to try to form a secondary lower top. If successful then look for a pullback into 4664.25 to 4630.25.
Taking out 4730.25 will indicate the selling pressure is getting stronger. This could lead to a retest of the minor bottom at 4572.75.
On the bullish side, taking out the minor Fibonacci level at 4718.25 could trigger an acceleration to the upside with 4808.25 the next potential upside target.
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This article was originally posted on FX Empire