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March E-mini Dow Jones Industrial Average futures are trading lower overnight. Traders are using the weaker-than-expected export data from China as an excuse to book profits and pare positions. The Dow may see additional selling pressure throughout today’s session if tensions continue to escalate between Ukraine and Russia. There are no major U.S. economic reports today.
Technically, on Friday, the Dow took out the recent tops at 16489 and 16496, but failed to attract enough buying power to trigger a move into the contract high at 16540. These prices remain potential upside targets.
The first uptrending angle today is at 16378. This angle was tested overnight and held. How traders react to this angle after the cash market opening should set the tone for the day. The next uptrending angle from the 16058 bottom is at 16218.
A new short-term range is forming between 16058 and 16508. This range has created a retracement zone at 16283 to 16230. This area is the next likely downside target.
Taking out 16508 today with conviction should trigger a rally into the contract high at 16540. A sustained move under 16378 will give the market a bearish bias today. Since the main trend is up on the daily chart, watch for buyers inside 16283 to 16230.