E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Close Under 29385 Signals Weakness

March E-mini Dow Jones Industrial Average futures are trading lower late in the session on Friday as investors trim positions ahead of the long U.S. holiday weekend. Despite Friday’s decline, stocks were on pace to post back-to-back gains for the week. The Dow advanced even as investors grappled with a rising number of reported coronavirus cases.

At 20:24 GMT, March E-mini Dow Jones Industrial Average futures are trading 29309, down 123 or -0.42%.

The Dow was trading higher during the pre-market session but turned lower shortly before the cash market opening after a report on U.S. Core Retail Sales disappointed. Andrew Hunter, senior U.S. economist at Capital Economics said in a note the data suggests “consumer spending is still struggling for momentum.”

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 29543 will signal a resumption of the uptrend. Friday’s inside move suggests investor indecision and impending volatility. It could also be an early indication that the market is getting ready to shift momentum from up to down.

The main trend will change to down when sellers take out the last swing bottom at 28850.

The short-term range is 28850 to 29543. Its retracement zone at 29197 to 29115 is the first downside target. Since the main trend is up, buyers could come in on the first test of this zone.

The main range is 28105 to 29543. Almost immediately after the main trend changes to down, the market will test its retracement zone at 28824 to 28654.

Short-Term Outlook

Based on Friday’s price action and the current price at 29309, the direction of the March E-mini Dow Jones Industrial Average into the close will be determined by trader reaction to the steep uptrending Gann angle at 29385.

Bearish Scenario

A sustained move under 29385 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the short-term retracement zone at 29197 to 29115.

Bullish Scenario

A sustained move over 29385 will signal the presence of buyers. If this generates enough upside momentum then look for the rally to possibly extend into the record high at 29543.