March E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. Volatility is extremely high so be prepared for a wild, two-sided trade.
Weekly Technical Analysis
The main trend is down according to the weekly swing chart. The trend turned down on a move through 23201. A sustained move under this level could generate enough downside momentum to challenge 21575. This is the trigger point for a possible acceleration to the downside.
The main range is 21575 to 26684. The Dow is currently straddling its retracement zone at 24130 to 23527. Trader reaction to this zone will determine the direction of the market today.
Weekly Technical Forecast
Based on the current price action, the direction of the Dow today is likely to be determined by trader reaction to the Fibonacci level at 23527.
A sustained move under 23527 will indicate the selling is getting stronger. This could trigger a break into the uptrending Gann angle at 23047. We saw this test earlier today.
If 23047 fails as support then look for the selling to extend into the next uptrending Gann angle at 22311. This is the last potential support angle before the 21575 main bottom.
A sustained move over 23527 will signal the presence of buyers. This could underpin a rally into 24130. The buying will get stronger on a sustained move over 24130 with the first target angle coming in at 22311.
Overtaking 22311 could lead to an even stronger rally with the target angle coming in at 25660.