E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Momentum Shifts to Down Under 35488
March E-mini Dow Jones industrial Average futures are trading lower shortly before the cash market close on Monday as investors remained cautious about how the omicron variant will impact the economy and what the Federal Reserve will announce Wednesday afternoon.
The new variant has pushed some government officials to reinstate health restrictions to slow the spread. As of Sunday, the U.S. was approaching 800,000 coronavirus-related deaths. U.K. Prime Minister Boris Johnson confirmed Monday that at least one patient infected with the omicron variant has died in the country.
At 20:49 GMT, March E-mini Dow Jones Industrial Average futures are trading 35651, down 224 or -0.62%.
Boeing is the hardest hit stock, down 3.49%, followed by Home Depot, down 2.35% and Dow Inc, which is off by 2.03%. Coca-Cola is the best performing Dow component, up 2.73%. Johnson & Johnson is up 1.63%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 36153 will change the main trend to up. A move through 33860 will signal a resumption of the downtrend.
The minor trend is up. This is controlling the momentum. A trade through 35488 will change the minor trend to down.
The minor range is 35488 to 36030. The E-mini Dow is currently trading on the weak side of its pivot at 35759, making it new resistance.
The short-term range is 33860 to 36030. If the minor trend changes to down then its retracement zone at 34945 to 34689 will become the primary downside target.
Daily Swing Chart Technical Forecast
The direction of the March E-mini Dow Jones Industrial Average into the close on Monday is likely to be determined by trader reaction to 35875.
A sustained move under 35875 will indicate the presence of sellers. Crossing to the weak side of the pivot at 35759 will indicate the selling pressure is getting stronger. This could trigger a move into the minor bottom at 35488.
Taking out 35488 will change the minor trend to down, shifting momentum to the downside. This could trigger an acceleration into the short-term retracement zone at 34945 to 34689. Aggressive counter-trend buyers could come in on a test of this area.
A sustained move over 35875 will signal the presence of buyers. If this creates enough upside momentum then look for a surge into the intraday high at 36030. Overtaking this level could trigger an acceleration into 36153 then 36330.