E-mini Dow Jones Industrial Average (YM) Futures Analysis – Short-Term Value Area is 24491 to 24395

March E-mini Dow Jones Industrial Average futures broke hard late in the session on Friday when a wave of huge selling pressure hit the blue chip market shortly before the close. The move was likely triggered by aggressive position-paring and profit-taking before the long-holiday week-end. Volume continued to remain well-below average, coming in more than 1 billion shares below its 50-day average.

The futures contract settled on Friday at 24735, down 62.00 or -0.25%.

The main trend is up according to the daily swing, however, momentum may have shifted to the downside with the formation of a potentially bearish closing price reversal top on Friday.

A trade through 24667 will indicate the presence of sellers. A move through 24886 will negate the closing price reversal top. Taking out 24896 will signal a resumption of the uptrend.

The main range is 24086 to 24896. If the selling pressure continues, we could see a break into its retracement zone at 24491 to 24395. Since the main trend is up, buyers are likely to show up on a test of this 50% to 61.8% zone. Therefore, we could see a technical bounce.

The next move in the March E-mini Dow Jones Industrial Average will be determined by whether investors prefer to buy strength at current high levels, or play for a pullback into a value zone.