E-mini Dow Approaching Major Support Zone at 33461 – 32665

March E-mini Dow Jones Industrial Average futures closed lower on Thursday as the Ukraine crisis kept investors on edge. Meanwhile, soaring prices of oil and other commodities have stoked fears that recent high inflation could combine with stagnant economic growth, making it more difficult for the Federal Reserve and other major central banks to manage interest rates.

On Thursday, March E-mini Dow Jones Industrial Average futures settled at 33738, down 111 or -0.33%.

The percentage of fund managers who expect so-called stagflation within the next 12 months stood at 30%, compared with 22% last month, a survey from BofA Global Research showed.

Losses were scattered across many sectors on Thursday with Boeing dropping 4.53%. Salesforce.com Inc losing 2.68% and Intel Corp down 1.92%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since February 24.

A trade through 35060 will change the main trend to up. A move through 32167 will signal a resumption of the downtrend.

The main range is 30089 to 36832. Its retracement zone at 33461 to 32665 is support. It’s controlling the long-term direction of the market.

The short-term range is 36832 to 32167. Its retracement zone at 34500 to 35050 is resistance. It’s controlling the near-term direction of the E-mini Dow.

On the upside, a minor pivot at 33960 is resistance. On the downside, a minor pivot at 33155 is support.

Short-Term Outlook

The direction of the March E-mini Dow Jones Industrial Average futures contract early Friday is likely to be determined by trader reaction to 33960.

Bearish Scenario

A sustained move under 33960 will indicate the presence of sellers. The first two downside targets are a pair of 50% levels at 33461 and 33155.

Taking out 33155 will indicate the selling pressure is getting stronger with the main Fibonacci level at 32665 the next target, followed by the main bottom at 32167.

Bullish Scenario

A sustained move over 33960 will signal the presence of buyers. Taking out Thursday’s high at 34143 will indicate the buying is getting stronger with the short-term retracement zone at 34500 – 35050 the next key target area.

Overtaking 35060 will put the E-mini Dow on the strong side of the short-term retracement zone. It will also change the main trend to up. This could trigger an acceleration to the upside.