The first upside target today is a downtrending Gann angle at 26044. We could see a technical bounce on the first test of this angle. If it is taken out, however, then look for a surge into the next downtrending Gann angle at 26364.
March E-mini Dow Jones Industrial Average futures are trading higher shortly after the opening. Investors seem to be unfazed by earlier comments from new Federal Reserve Chair Jerome Powell. In prepared remarks, Powell said that the central bank will continue to raise rates despite recent market volatility.
The main trend is up according to the daily swing chart. The trend turned up on Monday when buyers took out the previous main top at 25424. This price is minor support. The main trend will change to down on a trade through 24576.
The main range is 26684 to 23088. Its retracement zone at 25310 to 24886 is new support. This zone is also controlling the near-term trend of the market. Holding above it is giving the Dow an upside bias.
The first upside target today is a downtrending Gann angle at 26044. We could see a technical bounce on the first test of this angle. If it is taken out, however, then look for a surge into the next downtrending Gann angle at 26364. This is the last major downtrending Gann angle before the 26684 main top.
On the downside, the first support is a price cluster at 25404 to 25344. This is followed closely by 25310.
The daily chart starts to open up to the downside under 25310 with a pair of steep uptrending Gann angles at 24960 and 24880 the next likely targets.
The most important support level today is the 50% level at 24886.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.