E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Close Under 30720 Forms CPR Top

March E-mini Dow Jones Industrial Average futures hit a record high on Thursday as investors bet on more COVID-19 pandemic fiscal stimulus under a Democrat-controlled U.S. Congress and Presidency to help the economy ride out a steep downturn.

Economy-linked financials jumped 2.2% while industrial and materials sectors hovered near record highs on expectations that President-elect Joe Biden would line up a bigger fiscal package and boost infrastructure spending. Rate-sensitive bank shares gained 3.2%, tracking a surge in the benchmark 10-year Treasury yield.

At 18:31 GMT, March E-mini Dow Jones Industrial Average futures are trading 30937, up 217 or +0.71%.

In economic news, the number of Americans filing for jobless benefits unexpectedly dipped last week, while staying extremely high, a Labor Department report showed, with the job market recovery appearing to stall as COVID-19 threatens to overwhelm the country.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through yesterday’s high reaffirmed the uptrend. A trade through 29318 will change the main trend to down.

The minor trend is also up. A trade through 29760 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range support is the 50% level at 30424. The second minor range support is 30203. This levels will move up with each new high.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average into the close will be determined by trader reaction to 30720.

Bullish Scenario

A sustained move over 30720 will indicate the presence of buyers. Taking out the intraday high at 31087 will signal a resumption of the uptrend. There is no resistance.

Bearish Scenario

A sustained move under 30720 will signal the presence of sellers. This could trigger a late session break into a pair of 50% levels at 30424 and 30203.

A close below 30720 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.

For a look at all of today’s economic events, check out our economic calendar.