E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Close Over 30893 Sets Up Test of 31148The direction of the March E-mini Dow Jones Industrial Average into the close will likely be determined by trader reaction to 30893.
March E-mini Dow Jones Industrial Average futures are advancing into the cash market close on Wednesday as investors appeared to be shrugging of the decision by Congress to begin impeachment hearings against President Donald Trump.
After a choppy trade early in the session, the blue chip index moved higher after the afternoon release of the Federal Reserve’s Beige Book. The report was not that impressive, revealing U.S. economic activity on the East Coast increased only modestly while employment dropped in a growing number of Fed districts due to a surge in coronavirus infections.
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Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 31148 will signal a resumption of the uptrend. The main trend will change to down on a move through 29318.
The minor trend is also up. A trade through 30638 will change the minor trend to down. This will also shift momentum to the downside.
The first minor range is 31148 to 30638. Its 50% level is support.
The second minor range is 29760 to 31148. Its 50% level at 30454 is additional support.
Finally, a third potential 50% support level comes in at 30233.
Based on the late session price action, the direction of the March E-mini Dow Jones Industrial Average into the close will likely be determined by trader reaction to 30893. This would also set up the Dow to challenge its record high at 31148 in Thursday’s premarket trader or shortly after tomorrow’s cash market opening.
A failure to hold 38093 wouldn’t be a disaster. It would be an indication that investors are not willing to chase prices higher at current levels but would rather buy the dips. However, a failure to hold 30233 would raise concerns since this is a potential trigger point for an acceleration to the downside.
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