E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Main Trend Changes to Down Under 31103A close under 31916 will form a potentially bearish closing price reversal top.
March E-mini Dow Jones Industrial Average futures are down sharply shortly before the cash market close on Thursday as a surge in Treasury bond yields encouraged investors to dump higher risk assets. Dow components Apple and Microsoft all fell more than 2%.
The blue chip average tumbled to its session low as the 10-year Treasury yield soared about 0.2% above 1.6% in a sudden move that some described as a “flash” spike. The yield later settled back down to around 1.5%, its highest level since February 2020.
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At 20:38 GMT, March E-mini Dow Jones Industrial Average futures are trading 31259, down 657 or -2.06%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 31103 will change the main trend to down. A move through 32033 will signal a resumption of the uptrend.
The minor range is 31103 to 32033. The Dow is currently trading on the weak side of its retracement zone at 31458 to 31568, turning the area into resistance.
The short-term range is 29552 to 32033. Its 50% level at 30793 is the first downside target.
The intermediate range is 29552 to 32033. Its retracement zone at 30676 to 30355 is another downside target area.
A close under 31916 will form a potentially bearish closing price reversal top. If confirmed on Friday, this could trigger the start of a 2 to 3 day correction, or in this case, a change in trend.
If the trend chances to down then look for the selling to possibly extend into 30793, followed by 30676. If the latter fails then look for the selling to possibly extend into the main Fibonacci level at 30355.
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