E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 31776 to Sustain Momentum

March E-mini Dow Jones Industrial Average futures are trading sharply higher shortly after the opening on Tuesday. The blue chip average is being supported by a jump in technology shares. The catalyst behind the rally is a drop in Treasury yields. Position-squaring and profit-taking ahead of next week’s Fed meeting could also be driving prices higher.

At 15:31 GMT, March E-mini Dow Jones Industrial Average futures are trading 31984, up 298 or +0.65%.

There wasn’t any major news overnight. I think that investors saw value in the market and bought it. Furthermore, selling occurs during periods of uncertainty. Last week, investors had to deal with a speech from Fed Chair Powell and the jobs report. Investors really don’t have much to worry about until the March 17 Fed announcements.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 32114 will signal a resumption of the uptrend. The main trend will change to down on a move through 30512.

The minor range is 30512 to 32114. Its 50% level at 31313 is the nearest support.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow on Tuesday will be determined by trader reaction to Monday’s close at 31776.

Bullish Scenario

A sustained move over 31776 will indicate the presence of buyers. If this move creates enough upside momentum then look for buyers to take out 32114.

Bearish Scenario

A sustained move under 31776 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the pivot at 31313.

Side Notes

If traders start to return to technology stocks then don’t expect the same performance in the Dow. The trend may be up, but gains are likely to be relatively smaller in the Dow.

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